BSE, NSE Impose ₹59.17 Lakh Penalty On NTPC, SJVN & REC Over Governance Lapses

Mumbai: Stock exchanges BSE and NSE have imposed combined penalties of about Rs 59.17 lakh on state-owned power companies NTPC, SJVN and REC for failing to meet corporate governance requirements under SEBI’s listing regulations.

The action relates mainly to deficiencies in the composition of the companies’ boards and board committees. All three companies have argued that director appointments are controlled by the Union government and said they would seek waivers from the exchanges.

NTPC Fined

NTPC said in a regulatory filing that it had received notices from both exchanges for non-compliance with Regulation 17(1) of the SEBI Listing Obligations and Disclosure Requirements Regulations. BSE and NSE each levied a penalty of Rs 5,36,900, inclusive of goods and services tax, taking NTPC’s combined fine to Rs 10,73,800.

In its response, the power producer said it is a government company whose Articles of Association authorise the President of India, acting through the Ministry of Power, to appoint or remove directors. NTPC has asked both exchanges to withdraw the penalties.

SJVN Seeks Waiver

Hydropower producer SJVN disclosed that BSE and NSE had each imposed a fine of Rs 13,44,020 for breaches of certain SEBI listing requirements. Its aggregate penalty stands at Rs 26,88,040.

SJVN said it would request a waiver on the same grounds, noting that authority over board appointments rests with the President through the Power Ministry. The company added that it is actively pursuing the appointment of the required number of independent directors with the ministry to bring its board into compliance.

REC Faces Action

REC received separate notices from BSE and NSE over non-compliance during the quarter ended June 30, 2026. The lapses involved provisions governing the composition of its board and associated committees. Each exchange imposed Rs 10,77,340, resulting in a combined fine of Rs 21,54,680.

REC provides long-term loans and other financing products for lending to central, state and private-sector companies developing infrastructure assets across India. The three companies’ disclosed penalties together total Rs 59,16,520.