NALCO fined for board composition non-compliance

NALCO received notification on August 29, 2025, from BSE and NSE regarding a fine of INR 751,660/- each, for non-compliance with SEBI regulations for the quarter ended June 30, 2025. This fine includes 18% GST on the basic fine amount of INR 637,000/-. NALCO communicated to the Ministry of Mines on September 8, 2025, requesting expedited appointment of independent directors.

The company clarified to BSE and NSE on September 8, 2025, that as a central public sector enterprise (CPSE), the authority for appointing directors rests with the President of India, making it beyond NALCO's control. On September 9, 2025, NSE acknowledged NALCO's compliance with committee composition but noted non-compliance with board composition. NALCO submitted a waiver application to BSE on September 18, 2025, and plans to apply for a penalty waiver once the board composition is compliant.

The matter was discussed at the 359th Board of Directors meeting on September 25, 2025. The board resolved to inform the exchanges that NALCO is a CPSE, and director appointments are beyond its control. It requested that the non-compliances be condoned and penalties waived. The chairman-cum-managing director was also advised to apprise the administrative ministry of the penalties and request the early appointment of independent directors.