Power Grid Corporation Fined by BSE and NSE for Director Non-Compliance

BSE and NSE, leading stock exchanges, have imposed penalties of Rs 5,42,800 each on Power Grid Corporation, a state-owned entity, for not having necessary independent directors, including one woman, Power Grid Corporation disclosed in a regulatory filing.

According to the company’s statement, it received notices from NSE and BSE on November 21, 2023, citing non-compliance with Regulation 17(1) of the Sebi (LODR) due to the insufficient number of independent directors, including the absence of one woman independent director on the Board during the quarter ending September 30, 2023. In response to these notices, the company has formally requested the exchanges to consider waiving the fines associated with Regulation 17(1) non-compliance under the Securities and Exchange Board of India (SEBI) (LODR) Regulations, 2015.

Power Grid clarified that, being a government company as defined in Section 2(45) of the Companies Act, 2013, the authority to appoint functional or official part-time directors or non-official part-time directors (independent directors) rests with the President of India. The company emphasised that the observed non-compliance for the quarter ending September 30, 2023, was not due to any lapse on its part.

The company highlighted its ongoing efforts to address the issue by actively engaging with the administrative ministry, the Ministry of Power, to fill the vacant positions of independent directors, including one woman independent director.