National Aluminium Company (NALCO) has requested the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) to waive a fine of ₹5,42,800 imposed for non-compliance with SEBI regulations. The fine, which includes GST at 18% on a basic fine amount of ₹4,60,000, was levied due to the absence of an adequate number of independent directors on the company’s board for the quarter ended 31 December 2025.
The company communicated the issue to its promoter, the Government of India, through the Ministry of Mines, seeking expedited appointments of the required number of independent directors to ensure compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. NALCO clarified to both exchanges that, as a Central Public Sector Enterprise (CPSE), the authority to appoint directors lies with the President of India, and the company has no control over the appointments.
During the 365th board meeting held on 6 March 2026, the board acknowledged the communications from BSE and NSE about the fine. The board advised NALCO to inform the exchanges that the company is not responsible for the delay in appointments and requested that the non-compliance be condoned and the penalties waived.
Furthermore, the board recommended that the Chairman-cum-Managing Director write to the Administrative Ministry to highlight the penalties imposed due to the absence of independent directors and to request the early appointment of the requisite number of directors to comply with the Companies Act, 2013, and SEBI regulations.
NALCO emphasised that the appointment of independent directors is beyond its control, as all directors are appointed by the President of India. The company is continuously engaging with the Administrative Ministry to ensure compliance with statutory requirements.
In light of these efforts, NALCO has requested that its waiver application submitted on 3 March 2026 be considered favourably, and the fine imposed for the quarter ended 31 December 2025 be waived.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).