State-owned power companies NTPC, SJVN and REC have been fined a combined Rs 59.17 lakh by the BSE and NSE for failing to meet certain corporate governance requirements under SEBI's listing regulations, according to exchange filings.
The penalties relate primarily to gaps in board composition and the constitution of board-level committees. The three companies have attributed the lapses to delays in government-appointed director positions and said they will approach the stock exchanges seeking waiver of the penalties.
NTPC has received separate notices from both BSE and NSE for non-compliance with Regulation 17(1) of the SEBI Listing Obligations and Disclosure Requirements Regulations.
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Each exchange has imposed a penalty of Rs 5,36,900, including GST, taking the company's total financial liability to Rs 10,73,800.
In its response, NTPC said its board appointments are governed by its Articles of Association, under which the President of India, acting through the Ministry of Power, has the authority to appoint or remove directors. The company has therefore requested both exchanges to withdraw the penalties.
Hydropower producer SJVN faces the largest penalty among the three companies. BSE and NSE have each levied Rs 13,44,020, resulting in a combined fine of Rs 26,88,040.
SJVN said the required board appointments are also dependent on the Union government. The company plans to seek a waiver while continuing discussions with the Ministry of Power to appoint the required independent directors and address the governance gaps.
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REC has also received notices from both exchanges concerning compliance failures for the quarter ended June 30, 2026. Each exchange imposed a penalty of Rs 10,77,340, taking REC's combined fine to Rs 21,54,680.
The penalties imposed on the three companies total Rs 59,16,520.
The companies' responses highlight a recurring governance issue among government-controlled listed entities, where compliance with prescribed board structures can depend on appointments made by the government.
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