New Delhi: Mahanagar Telephone Nigam Limited (MTNL), the state-owned telecom PSU, has requested a waiver of penalties imposed by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for non-compliance with board composition requirements.
Fines for Non-Compliance
Both NSE and BSE levied fines totaling ₹6,73,780 on MTNL. The penalties include a basic fine of ₹5,71,000 and GST of ₹1,02,780.
The non-compliance relates to multiple governance lapses. These include the absence of a woman director, improper constitution of the Audit Committee, Nomination and Remuneration Committee, Stakeholder Relationship Committee, and Risk Management Committee.
MTNL’s Response
In its exchange filing, MTNL clarified that all board-level appointments are made by the Department of Telecommunications (DoT) under the Ministry of Communications.
The DoT appointed two Independent Directors, including one woman Independent Director, on April 15, 2025. The company further stated that the process of appointing four additional Independent Directors has already been initiated with the Government of India.
Request for Waiver
MTNL has formally sought a waiver of the fines from NSE and BSE. The company also clarified that the penalty has no material impact on its financial performance, operations, or other activities.
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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