In a shocking development, India’s biggest oil firms including Indian Oil, BPCL and gas utility GAIL, which are also Maharatna PSUs, have been slapped with fines for a record fifth straight quarter for failing to meet listing norms of having the requisite number of independent and women directors on their board. It is shambolic to realise that the companies had faced fines for the same reason in the previous four quarters as well!
Stock exchanges BSE and NSE have slapped fines on oil refining and fuel marketing giants Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL), explorer Oil India Ltd (OIL), gas utility GAIL (India) Ltd, and refiner Mangalore Refinery and Petrochemicals Ltd (MRPL) for not meeting the listing requirement in the April-June quarter.
IOCL stated, “BSE and the National Stock Exchange of India Ltd (NSE) imposed a fine of Rs 5,36,900 each on the company for non-compliance of Regulation 17(1) of the SEBI (LODR) relating to the composition of the Board of Directors during the quarter ended June 30, 2024. In response to the notices, IndianOil vide letter dated August 22, 2024 has represented to the BSE and NSE that being a government company, the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India and hence the shortfall in independent directors including non-appointment of women independent director on the board of the company during the quarter ended June 30, 2024 was not due to any negligence/default by the company.”
PSUs IOC, HPCL, BPCL, GAIL, OIL and MRPL were slapped with a fine of Rs 5,36,900 each by NSE and BSE for the January-March quarter, a second fine of Rs 5,42,800 each for the third quarter (October-December 2023), and a similar fine for the second quarter (July-September 2023).
