Oil India fined for independent director shortfall

Oil India Limited has been fined INR 536,900 each by both the National Stock Exchange of India Limited (NSE) and BSE Limited. The penalties were for non-compliance with Regulation 17(1) of the SEBI (LODR) Regulations, 2015, regarding the non-appointment of the requisite number of independent directors for the quarter ended June 2025. The company received email notifications of these fines on August 29, 2025.

The state-owned enterprise stated that the appointment of its board directors falls under the purview of the Administrative Ministry [Ministry of Petroleum & Natural Gas]. This indicates that the non-compliance was beyond its direct control. Oil India Limited has formally requested the Ministry of Petroleum & Natural Gas to appoint the necessary number of independent directors to align with regulatory requirements.

Despite the regulatory action, Oil India Limited has reported that there will be no material impact on its financial, operational, or other activities. The company confirmed that the impact of the fine is quantifiable in monetary terms, but it does not anticipate significant disruption to its business.