Stock exchanges fine power giants over ₹59 crore for listing compliance breach

The Bombay Stock Exchange and National Stock Exchange have issued separate penalty notices to three major public sector power utilities totalling ₹59.14 crore for non-compliance with stock exchange listing norms.

NTPC, India's largest power generation company, disclosed in regulatory filings that it received penalties of ₹5,36,900 from each exchange for breach of Regulation 17(1) of the listing regulations. In its response to the bourses, NTPC argued that as a government company, the appointment and removal of its directors are vested with the President of India through the Ministry of Power, citing provisions in its Articles of Association. The company has formally requested both exchanges to waive the imposed fines.

SJVN and REC have similarly challenged their penalties, citing analogous governance constraints. SJVN stated that both BSE and NSE imposed separate fines of ₹13,44,020 each for non-compliance with certain SEBI listing regulations, and indicated it would seek waivers from both exchanges. REC has not yet made detailed public statements regarding its penalty amount or intended response.

The regulatory action reflects ongoing scrutiny by stock exchanges on listed companies' adherence to corporate governance standards. The penalties underscore tensions between public sector governance frameworks and capital market compliance requirements, particularly regarding director appointment mechanisms in state-owned enterprises.