State-owned telecom company MTNL has been fined a total of Rs 5.42 lakh by stock exchanges NSE and BSE for not meeting the rules to the composition of its board.

The exchanges said MTNL has failed to comply with Regulation 17(1) of SEBI’s Listing Obligations and Disclosure Requirements (LODR) rules, which mandate the presence of a required number of independent directors on the company’s board.

In a regulatory filing, MTNL said it is required to appoint four more independent directors to meet the norms.

“In compliance of Regulation 30 of SEBI (LODR) Regulations, 2015 and in terms of Sub-Para 20 of Para A of Part A of Schedule III, this is to inform you that MTNL has received Letter dated 28.11.2025 from BSE regarding Non-Compliance with the provisions of Regulation 17(1) of SEBI (LODR) Regulations, 2015 respectively i.e. Non-compliance with the requirements pertaining to the Composition of the Board,” the firm said in its exchange filing.

However, it has not been able to do so because all board appointments for the company are made by the Department of Telecommunications (DoT), as MTNL is a public sector undertaking.

According to the filing, the fine includes a basic penalty of Rs 4.6 lakh and an additional GST of 18 per cent, which amounts to Rs 82,800.

“In this regard both NSE and BSE has imposed fines on MTNL amounting to Rs 5,42,800/- (inclusive of Basic fines amounting to Rs 4,60,000/- and GST @18 per cent amounting to Rs 82,800/-) respectively,” it added.

MTNL also informed that the DoT had appointed two independent directors, including one woman independent director, on April 15, 2025.

The company added that it has already requested the government to appoint the remaining four independent directors as required.

MTNL further said it is asking NSE and BSE to waive the fines imposed on it.

(With inputs from IANS)