New Delhi: State-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) has been fined by India’s leading stock exchanges, NSE and BSE, for non-compliance with Securities and Exchange Board of India (SEBI) regulations regarding board composition. The penalties were announced through a regulatory filing by MTNL on Saturday.
Reasons for Penalty: Board Composition Norms Violated
According to the filing, both NSE and BSE imposed fines of Rs 6.73 lakh each on MTNL for violating provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR). The non-compliance issues include:
Failure to appoint a woman director on the board
Non-compliance with the constitution of key committees such as the Audit Committee, Nomination and Remuneration Committee, Stakeholder Relationship Committee, and Risk Management Committee
Board Appointments Controlled by Department of Telecommunications
MTNL clarified that as a public sector undertaking, all board appointments, including independent directors, are made by the administrative ministry — the Department of Telecommunications (DoT). The company noted that two independent directors, including a woman director, were appointed by DoT effective April 15, 2025. Additionally, the appointment process for four more independent directors is currently underway with the central government.
MTNL Requests Fine Waiver from NSE and BSE
In its filing, MTNL also mentioned that it has requested both NSE and BSE to waive the imposed fines, considering the delay was due to administrative processes beyond the company’s control.
About MTNL
Mahanagar Telephone Nigam Limited (MTNL), a central public sector enterprise, provides telecom services in Delhi and Mumbai. Established in 1986, the company has been a key player in India’s telecom sector. Despite financial challenges, MTNL continues to support the government’s vision of digital connectivity and telecom expansion.
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