New Delhi: State-owned engineering company Bharat Heavy Electricals Limited (BHEL) has been fined by India’s two main stock exchanges, BSE and NSE, for not following rules related to the appointment of independent directors on its board. The exchanges have each imposed a fine of Rs 5,36,900, including GST.

Reason for the Fine

As per a regulatory filing, the fine is related to non-compliance of SEBI Regulation 17(1) for the quarter ending June 2025. This regulation requires that at least 50 percent of the company’s board should be independent directors. However, BHEL’s board had fewer than the required number, which led to the penalty from both stock exchanges.

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BHEL Responds, Plans to Seek Waiver

In its response, BHEL said that as a government-owned company, the appointment of directors—including independent ones—is handled by the central government. The company stated it regularly consults the government to ensure all appointments meet compliance norms. Because of this structure, BHEL now plans to request a waiver of the fines imposed by the exchanges.

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Board Composition Under Scrutiny

The notices from BSE and NSE were dated August 29, 2025, and cited that BHEL’s board composition did not meet legal norms during the specified period. BHEL has promised to work with the government to resolve the issue and ensure full compliance in future.