MTNL Fined by NSE and BSE Over SEBI Committee Norms
Why in the news
The exchanges fined MTNL because certain board committees were not formed as SEBI’s listing rules demand.
Committee rules, SEBI LODR 2015
| Committee | Regulation | Requirements |
|---|---|---|
| Nomination and Remuneration (NRC) | 19 | Minimum 3 directors, all non-executive; at least 50% independent; independent chairperson |
| Stakeholders’ Relationship (SRC) | 20 | Non-executive chairperson; board picks other members; handles grievances of security holders |
| Risk Management (RMC) | 21 | Mandatory for top 1,000 listed entities by market cap; board-member majority and chairperson; one independent director at least |
Violation and MTNL
- Treated as a corporate governance lapse.
- SEBI’s May 2018 circular (SEBI/HO/CFD/CMD/CIR/P/2018/77) standardises fines for LODR breaches.
- MTNL: Mahanagar Telephone Nigam Limited.
Exam angle
- LODR: Listing Obligations and Disclosure Requirements.
- Regulation numbers: 19, 20, 21.