Mahanagar Telephone Nigam Limited (MTNL) has been penalised by the stock exchanges including NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). Both stock exchanges have imposed a fine of Rs 6.73 lakh on MTNL. This is over non-compliance with a SEBI (Securities Exchange Board of India) norm.
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According to a filing, "MTNL has received Letter ...from NSE and...BSE regarding Non-Compliance with the provisions of Regulation...of SEBI (LODR) Regulations, 2015, respectively... Non-compliance with the requirements pertaining to the composition of the board, including failure to appoint a woman director, non-compliance with the constitution of the audit committee."
The penalty also covers non-compliance with requirements related to the constitution of the Nomination and Remuneration Committee, the Stakeholder Relationship Committee, and the Risk Management Committee.
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In response, MTNL clarified that as a public sector undertaking, all board appointments—including those of independent directors—are made by its administrative ministry, the Department of Telecommunications (DoT). The company added that two independent directors, including one woman director, have already been appointed by the DoT with effect from April 15, while the appointment of four more independent directors has been taken up with the Centre.
