BHEL fined for board composition non-compliance

Bharat Heavy Electricals Limited (BHEL) has received notices dated August 29, 2025, from both BSE Ltd. and National Stock Exchange of India Limited (NSE), each imposing a fine of Rs. 5,36,900. The penalties are for non-compliance with Regulation 17(1) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, during the quarter ending June 2025.

The non-compliance stems from the number of independent directors being less than 50% of the actual strength of BHEL's board. As a government company, BHEL's directors, including independent directors, are appointed by the Government of India.

In response, BHEL is proposing to seek a waiver of these fines from the stock exchanges, citing a relevant SOP circular. The company states it is regularly engaging with the Government of India to facilitate the appointment of the requisite number of independent directors to ensure ongoing compliance with the regulations.