Major Indian Oil Firms Fined for Failing to Meet Women Director on Board Norms

By: WE Staff | Monday, 26 August 2024

India's major oil firms, including Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Gas Utility GAIL (India) Ltd, have been fined for failing to comply with listing norms for the fifth consecutive quarter, highlighting the issue of board composition in major public sector enterprises. The sectors have failed to meet the requisite number of independent and women directors on their boards in the first quarter of the 2024-25 fiscal year, with stock exchanges BSE and NSE imposing fines on IOC, HPCL, BPCL, OIL, GAIL, and MRPL.

The penalties are part of SEBI's regulatory enforcement, aimed at promoting better corporate governance and transparency. The non-compliance could impact investor confidence and governance standards. These companies have argued that the appointment was government-assigned and had no role in the process. However, these firms have faced fines in the past four quarters due to listing norms requiring independent directors and at least one woman on the board.

IOC with Rs 5,36,900, BPCL with Rs 2,41,900, OIL, and MRPL each with Rs 5,36,900 have been fined by BSE and NSE for non-compliance with Regulation 17 (1) of the SEBI (LODR) relating to the composition of the Board of Directors during the quarter ended June 30, 2024. The oil grants have not complied with listing norms since April last year and have faced fines every quarter since then.