KIOCL Penalized for Board Composition Non-Compliance

State-owned KIOCL has been fined Rs 5.36 lakh each by BSE and NSE for not having half of its board as independent, as required under SEBI regulations. The company attributes the issue to government-appointed directors and seeks government intervention to rectify the board composition.

State-owned KIOCL faced penalties of Rs 5.36 lakh each from BSE and NSE on Thursday due to non-compliance with SEBI's board composition regulations.

The penalties were imposed because half of the company's board members were not independent directors for the quarter ending June 30, 2024, violating Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

KIOCL clarified that the company is a government entity and the power to appoint directors, including independent ones, rests with the President of India via the Ministry of Steel. The company has sought the government's help to meet SEBI's compliance requirements.

(With inputs from agencies.)