Rs 7.89 lakh Penalty Imposed On SJVN by BSE, NSE For Non-Compliance
By Ankur Chandra | Published at: Jun 16, 2025 08:36 PM IST
Shimla, June 16, 2025 — SJVN Ltd (NSE: SJVN-EQ | BSE: 533206), a Navratna Central Public Sector Enterprise, has informed the stock exchanges that it received penalty notices from both NSE and BSE totaling ₹7,89,420 (including GST) for non-compliance with key provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 during the quarter ended December 31, 2024.
Key SEBI Regulation Violations and Penalties
| Regulation | Nature of Non-Compliance | Fine (₹) | GST (₹) | Total (₹) |
|---|---|---|---|---|
| Reg. 17(1) | Board composition | 2,65,000 | 47,700 | 3,12,700 |
| Reg. 18(1) | Audit Committee constitution | 1,06,000 | 19,080 | 1,25,080 |
| Reg. 19 | Nomination & Remuneration Committee | 1,06,000 | 19,080 | 1,25,080 |
| Reg. 20 | Stakeholders Relationship Committee | 96,000 | 17,280 | 1,13,280 |
| Reg. 21(2) | Risk Management Committee | 96,000 | 17,280 | 1,13,280 |
| Total | 6,69,000 | 1,20,420 | 7,89,420 |
Board Response and Accountability
In its official communication, SJVN stated that the Board has taken cognizance of the notices and attributed the compliance lapses to delays in appointing independent directors—a responsibility of the President of India through the Ministry of Power.
SJVN being a Central Public Sector Undertaking, the powers to appoint Directors vest with the President of India. The Company or its Board is not vested with any powers in the matter.
The company confirmed that the required Board Committees have been reconstituted and are now compliant with SEBI Regulations 18(1), 19, 20, and 21(2). For compliance with Regulation 17(1), SJVN has repeatedly requested the Ministry of Power to expedite the appointment process of independent directors.
Warnings from Exchanges
The notices from NSE and BSE include warnings that failure to comply or remit the fine within 15 days could lead to:
- Freezing of promoter shareholdings across all demat accounts,
- Shifting of trading to the “Z” group or “Trade-for-Trade” segment,
- Suspension of equity trading in case of continued non-compliance.
These warnings are per SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.
Caution on Disclosure Delay
Additionally, SJVN acknowledged receipt of cautionary letters for a delayed disclosure of its analysts/institutional investors meeting held on August 16, 2024. The Board noted and initiated corrective actions to strengthen its internal compliance framework.
About the Company
SJVN Ltd, a listed Navratna PSU jointly owned by the Government of India and Himachal Pradesh, is engaged in hydroelectric power generation, transmission, and related infrastructure development. It is actively expanding its renewable energy portfolio and is listed on the NSE and the BSE.
This compliance episode underscores the significance of timely regulatory adherence, especially for state-run enterprises that are under the spotlight of governance expectations.
REF: https://nsearchives.nseindia.com/corporate/SJVN_16062025162240_1.pdf
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