State-run telecom firm Mahanagar Telephone Nigam Ltd has been penalised by stock exchanges NSE and BSE for non-compliance with respect to composition of the board as per SEBI norms, the company said in a regulatory filing.
The company, in its filing on Saturday, had said that both the exchanges had imposed a fine of Rs 6.73 lakh each on the company for non-compliance.
"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 filing said.
The penalty also includes non-compliance with the constitution of nomination and remuneration committee, constitution of stakeholder relationship committee and constitution of Risk management committee.
MTNL said it is a public sector undertaking and all board appointments, including independent directors, are made by the administrative ministry-- the Department of Telecommunications.
The company said that the two Independent directors, including one woman director, were appointed by DoT with effect from April 15, and the matter for the appointment of four more independent directors has already been taken up with the centre.
"The company is also requesting to NSE and BSE for waiver of fines," the filing said.
