Bourses fine BHEL, MOIL, 3 other PSUs for insufficient independent directors on board

MUMBAI - The National Stock Exchange and BSE Ltd have fined five public sector companies for not having the required number of independent directors on board as of September end.

These five companies are Bharat Electronics, Bharat Heavy Electricals, MOIL, Oil India, and Rail Vikas Nigam.

Rail Vikas Nigam, BHEL, Oil India, and MOIL were fined by over Rs 10 lakh by the exchanges.

However, the companies have clarified to the exchanges that the power to appoint independent directors rests with the government as they are state-owned firms.

“All directors in RVNL are appointed by the government of India through its administrative ministry, Ministry of Railways, and RVNL has no role to play in the appointment of any director,” Rail Vikas Nigam said in an exchange filing.

As such, the fine levied by the exchanges won’t have any impact on the financials or operations of the companies.

Presently, Rail Vikas’ board comprises Chairman and Managing Director Pradeep Gaur, Director - finance and CFO Sanjeeb Kumar and four other directors.

In trade on Thursday, shares of Rail Vikas ended 0.6% up on the National Stock Exchange at Rs 166.80. BHEL shares closed 1.1% higher at Rs 142.75, while those of MOIL, Oil India and Bharat Electronics ended in the red.