Mahanagar Telephone Nigam Ltd (MTNL), a state-run telecom company, has been fined ₹673,780 by stock exchanges NSE and BSE for not complying with Sebi norms, according to a regulatory filing.
The non-compliances are related to the Board's composition, including the absence of a female director, as well as the improper constitution of the Audit, Nomination and Remuneration, Stakeholder Relationship, and Risk Management Committees.
Key Highlights
- MTNL fined ₹6.73 lakh by NSE and BSE for failing to appoint a woman director.
- Non-compliance also included improper formation of key committees like audit and risk management.
NSE and BSE fined ₹673,780 for the aforementioned lapses. This includes a basic fine of ₹5,71,000 and ₹1,02,780 as Goods and Services Tax.
MTNL seeks a waiver
In its letter, MTNL stated that it is a Public Sector Undertaking, and that all Board appointments, including independent directors, are made by the Department of Telecommunications (DoT), Ministry of Communications.
The company stated that the DoT appointed two independent directors, one of whom is a woman, effective April 15.
"The matter for the appointment of four more independent directors has already been taken up with the government," announced MTNL. The company has also asked the NSE and BSE to waive the fines.
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Loan defaults increased to ₹8,659 crore
The company reported an increase in loan defaults, with outstanding dues to public sector banks reaching ₹8,659 crore by July 31. The figure is an increase from ₹8,584.93 crore of defaults were reported on June 30.
In a stock filing on August 18, MTNL reported that its total financial debt was ₹34,577 crore at the end of July. The figure is slightly higher than the ₹34,484 crore reported at the end of June.
