POWERGRID Penalised ₹10.86 Lakh by BSE and NSE over board composition lapses
POWERGRID fined ₹10.86 lakh by BSE and NSE for board composition non-compliance in Q3 FY26; PSU seeks waiver citing government-led director appointment process.
POWERGRID Penalised ₹10.86 Lakh by BSE and NSE over board composition lapses
Power Grid Corporation of India has been fined a total of ₹10.86 lakh by the BSE and NSE for non-compliance with board composition norms during Q3 FY26. The PSU has sought a waiver, citing constraints in director appointments under government procedures.
Power Grid Corporation of India Limited (POWERGRID) has informed stock exchanges that it has received regulatory fines from both major Indian bourses for failing to comply with board composition requirements during the quarter ended December 31, 2025.
The company received notices dated February 27, 2026, from BSE Limited and National Stock Exchange of India Limited, citing violations of SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulation 17(1), which mandates specific board composition standards for listed entities.
Both exchanges imposed identical penalties of ₹5,42,800 each (including GST), resulting in a total financial impact of ₹10,85,600 on the company.
POWERGRID attributed the non-compliance to its status as a government company under Section 2(45) of the Companies Act, 2013. As per applicable rules, the appointment of functional directors, part-time official directors, and independent directors is carried out by the President of India, a process that often leads to delays beyond the company’s direct control.
To address the issue, the company has escalated the matter to its administrative ministry, the Ministry of Power, requesting the filling of vacant Independent Director positions.
On February 28, 2026, POWERGRID formally submitted waiver requests to both BSE and NSE, seeking exemption from the fines. The company stated that the lapse was procedural in nature and not due to any governance failure or intent to disregard regulatory norms.
The disclosure, signed by Company Secretary and Compliance Officer Satyaprakash Dash, was made under Regulation 30 of SEBI LODR Regulations, ensuring transparency regarding regulatory actions and their financial implications for shareholders.
