SJVN Limited has been fined a total of Rs 26.88 lakh by the BSE and NSE for failing to maintain the required number of independent directors on its board and committees. The state-owned company stated the appointments are handled by the Ministry of Power and noted that it has now achieved compliance following recent appointments. SJVN plans to request a waiver of these fines, emphasizing that it has already reconstituted its committees to meet SEBI listing requirements.
SJVN Hit With Combined Rs 26.88 Lakh Exchange Penalty
SJVN Limited has been fined Rs 13.44 lakh each by the BSE and NSE, totaling Rs 26.88 lakh.
The company has since achieved compliance and is actively seeking a waiver for these penalties.
Reader Takeaway: SJVN claims prior non-compliance was due to delayed government director appointments; it is now fully compliant.
What just happened
The BSE and NSE issued separate penalty notices to SJVN for failing to meet SEBI Listing Regulations during the recent period. The violation specifically involved the absence of the required number of independent directors on the company’s Board and its key committees, including the Audit, Nomination and Remuneration, Stakeholder Relationship, and Risk Management committees. Additionally, the exchange flagged issues regarding the quorum requirements for board meetings.
Why this matters
While the financial impact is minimal relative to SJVN’s operational scale, the event underscores the governance hurdles frequently encountered by Public Sector Undertakings (PSUs). Shareholders often face risks when board compositions remain incomplete, as this can affect oversight and committee-level decision-making. The disclosure confirms that the regulatory breach was not intentional but linked to administrative delays in government-led appointments.
The backstory
As a government-owned entity, SJVN does not have the unilateral authority to appoint directors; this power rests with the President of India through the Ministry of Power. The company had been in ongoing discussions with the Ministry to address the vacancies. Following the appointment of Smt. Arti Kujur as an independent director on July 17, 2026, SJVN has formally reconstituted all required committees to satisfy regulatory norms.
What changes now
SJVN asserts that it is currently in full compliance with SEBI Regulations 17(2A), 20(2)/(2A), and 21(2). Moving forward, the company is engaging with the stock exchanges to request a waiver of the imposed fines, citing the nature of its ownership structure and the steps taken to rectify the shortfall.
What to track next
Investors should monitor official exchange updates regarding the waiver request. Furthermore, maintaining consistent board quorum is essential to avoid future penalties and ensure continued alignment with corporate governance standards.