The emblem of Oil and Natural Gas Corporation (ONGC). File
| Photo Credit: Reuters
State-owned oil and fuel giants together with IndianOil, ONGC and GAIL (India) Ltd have been slapped with fines for the fourth straight quarter for failing to meet itemizing necessities of getting the requisite variety of directors on their board.
Stock exchanges imposed a cumulative advantageous of ₹34 lakh on oil refining and gas advertising giants Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL), explorers Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), fuel utility GAIL, and refiner Mangalore Refinery and Petrochemicals Ltd (MRPL) for not assembly the itemizing requirement within the January-March quarter, inventory change filings confirmed.
In separate filings, the businesses detailed the fines imposed by the BSE and NSE for both not having the requisite variety of unbiased directors or the mandated ladies director within the quarter ended March 31, 2024 (fourth quarter of 2023-24 fiscal 12 months), however had been fast to level out that appointment of directors was executed by the federal government and so they had no position in it.
The corporations had confronted fines for the identical cause the earlier three quarters as effectively.
IOC, HPCL, BPCL, GAIL, OIL and MRPL in separate filings stated they’ve been slapped with a advantageous of Rs 536,900 every for the fourth quarter. ONGC confronted a advantageous of ₹182,900.
Listing norms require corporations to have unbiased directors in the identical proportion as government or useful directors. They are additionally required to have at the very least one girl director on the board.
ONGC stated it has been fined for its board being wanting one unbiased director.
IOC stated, “the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India and hence the shortfall in independent directors including non-appointment of women independent director on the board of the company during the quarter ended March 31, 2024 was not due to any negligence/default by the company.”
“Accordingly, IndianOil should not be held liable to pay the fines and the same should be waived-off,” IOC stated.
Stating that it usually takes up appointments of unbiased directors on the corporate board with guardian ministry, the corporate stated it “had received similar notices from the BSE and NSE in the past imposing fines and waiver requests from the company was considered favorably by the exchanges.”
HPCL and BPCL made comparable statements, whereas GAIL stated appointments are exterior the purview/management of firm administration. OIL stated it has requested the ministry for appointment of unbiased directors.
MRPL stated it has been repeatedly following up with the ministry for appointment of requisite variety of unbiased directors on the board and the identical has been beneath energetic consideration.
The corporations had been slapped a advantageous of ₹5,42,800 every for the third quarter (October-December 2023). They had confronted an analogous advantageous for the second quarter (July-September 2023).
For non-compliance in April-June 2023, ONGC was slapped with ₹3.36 lakh advantageous, IOC ₹5.36 lakh and GAIL ₹2.71 lakh advantageous. HPCL and BPCL had been every requested to pay ₹3.6 lakh advantageous, whereas Oil India had confronted a penalty of ₹5.37 lakh.
