Updated February 25th, 2024 at 15:57 IST

State-Owned Indian Oil and Gas Companies Fined Again for Listing Norm Violations

In their previous filings, the companies had cited similar reasons and outlined their efforts for remedial action.

Reported by: Business Desk
Crude Oil | Image:Unsplash
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Oil & Gas companies fined: State-owned oil and gas giants such as IndianOil, ONGC, and GAIL (India) have once again been fined for the third consecutive quarter due to their failure to meet listing requirements regarding the composition of their boards. The fines imposed by stock exchanges amount to a total of Rs 32.5 lakh, as revealed in regulatory filings.

The fines were issued by both the BSE and NSE for the quarter ending on December 31, 2023, as these companies lacked the required number of independent directors or a mandated woman director on their boards. It's noteworthy that these companies have faced similar fines in the preceding two quarters as well.

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Each of the six PSUs has been fined Rs 5,42,800 for the third quarter. ONGC, HPCL, and MRPL faced fines for insufficient independent directors, while IOC was penalized for lacking a woman independent director on its board.

The companies emphasized that the appointment of directors, including independent ones, is governed by the Ministry of Petroleum and Natural Gas, Government of India, and they have no control over it. They highlighted their ongoing efforts to ensure compliance with corporate governance norms but stressed that the non-compliance was beyond their control.

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IOC, for instance, clarified in its filing that it regularly communicates with the ministry for the appointment of the requisite number of directors to comply with regulations. Similar sentiments were echoed by GAIL, ONGC, HPCL, MRPL, and OIL, all of whom reiterated their efforts to address the issue with the government.

In their previous filings, the companies had cited similar reasons and outlined their efforts for remedial action. The fines for the second quarter were also uniform across the mentioned companies.

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Despite their proactive engagement with the government, fines continue to be imposed on these PSUs for non-compliance with listing norms, highlighting the ongoing challenges in governance and regulatory adherence within the sector.

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Published February 25th, 2024 at 15:57 IST