IOC, GAIL, ONGC fined for third consecutive quarter for failure to appoint directors
New Delhi: State owned oil and gas giants Many companies including Indian Oil, ONGC and GAIL (India) have suffered a major setback. Fine For the third consecutive quarter due to failure to meet Listing Standard Requirements Having the required number of director On their board. Stock exchanges have imposed fines on oil refining and fuel marketing giant Indian Oil Corporation (IOC), explorers Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), gas utility GAIL and refiner Hindustan Petroleum Corporation Ltd.HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) for a cumulative amount of Rs 32.5 lakh, as per stock exchange filings.
In separate filings, the companies explained in detail about the fines imposed. BSE And NSE either does not have the required number of independent directors or does not have mandatory women directors. third quarter expires on December 31, 2023, but he was quick to point out that the directors were appointed by the government and he had no role in it.
In the last two quarters also, companies had to face fines for the same reason.
Six PSUs said in separate filings that they have been fined Rs 5,42,800 for the third quarter. While ONGC and its subsidiaries HPCL and MRPL, GAIL and OIL faced fines for not having the required number of independent directors on their boards, IOC faced fines for not having a woman independent director on its board. Fell.
Listing norms require companies to have independent directors in equal proportion to executive or functional directors. They are also required to have at least one woman director on the board.
IOC, ONGC, OIL, GAIL, Bharat Petroleum Corporation Ltd, HPCL and Engineers India Ltd had to face a fine of Rs 5.42 lakh in the second quarter.
As for the latest fine, IOC said in a regulatory filing that “being a government company, the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India, and hence women cannot be appointed.” “The appointment of an independent director on the Board during the quarter ending December 31, 2023 was not due to any negligence/mistake of the company.”
Accordingly, the IOC said that he should not be held liable to pay the fine and it should be waived off.
“IOC regularly consults with the Ministry for appointment of required number of independent directors (including women independent directors) to ensure compliance with SEBI (LODR) as well as corporate governance norms prescribed under the Companies Act,” it said. It has received similar notices from two stock exchanges in the past and its exemption request was approved.
“The appointments are beyond the scope/control of GAIL’s management,” GAIL said in the filing.
“The non-compliance with respect to the composition of the Board was not under the control of the Company and the Company is making regular efforts with the Government of India (GoI) for appointment of the requisite number of Independent Directors to meet the compliance requirements.” ONGC said.
Directors at its subsidiaries HPCL and MRPL are also appointed by the government.
“The company has been approaching the government from time to time for appointment of the required number of directors on its board and the Government of India is aware of the matter,” HPCL said.
MRPL said it is in constant touch with the Ministry for appointment of requisite number of independent directors on the Board and the Ministry is actively considering the same.
Stating that the non-compliance was beyond the control of the company, OIL said it has requested the ministry for appointment of independent directors on the board of the company to comply with Regulation 17(1) of the SEBI (LODR) Regulations, 2015. Have done.
Companies had cited similar reasons and remedial action when faced with penalties for non-compliance in the last two quarters.
IOC, ONGC, OIL, GAIL, BPCL, HPCL and Engineers India Ltd were also equally fined Rs 5,42,800 for the second quarter. ONGC was fined Rs 3.36 lakh, IOC Rs 5.36 lakh and GAIL Rs 2.71 lakh for non-compliance in the April-June quarter. HPCL and BPCL were asked to pay a fine of Rs 3.6 lakh, while Oil India had to pay a fine of Rs 5.37 lakh.
In separate filings, the companies explained in detail about the fines imposed. BSE And NSE either does not have the required number of independent directors or does not have mandatory women directors. third quarter expires on December 31, 2023, but he was quick to point out that the directors were appointed by the government and he had no role in it.
In the last two quarters also, companies had to face fines for the same reason.
Six PSUs said in separate filings that they have been fined Rs 5,42,800 for the third quarter. While ONGC and its subsidiaries HPCL and MRPL, GAIL and OIL faced fines for not having the required number of independent directors on their boards, IOC faced fines for not having a woman independent director on its board. Fell.
Listing norms require companies to have independent directors in equal proportion to executive or functional directors. They are also required to have at least one woman director on the board.
IOC, ONGC, OIL, GAIL, Bharat Petroleum Corporation Ltd, HPCL and Engineers India Ltd had to face a fine of Rs 5.42 lakh in the second quarter.
As for the latest fine, IOC said in a regulatory filing that “being a government company, the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India, and hence women cannot be appointed.” “The appointment of an independent director on the Board during the quarter ending December 31, 2023 was not due to any negligence/mistake of the company.”
Accordingly, the IOC said that he should not be held liable to pay the fine and it should be waived off.
“IOC regularly consults with the Ministry for appointment of required number of independent directors (including women independent directors) to ensure compliance with SEBI (LODR) as well as corporate governance norms prescribed under the Companies Act,” it said. It has received similar notices from two stock exchanges in the past and its exemption request was approved.
“The appointments are beyond the scope/control of GAIL’s management,” GAIL said in the filing.
“The non-compliance with respect to the composition of the Board was not under the control of the Company and the Company is making regular efforts with the Government of India (GoI) for appointment of the requisite number of Independent Directors to meet the compliance requirements.” ONGC said.
Directors at its subsidiaries HPCL and MRPL are also appointed by the government.
“The company has been approaching the government from time to time for appointment of the required number of directors on its board and the Government of India is aware of the matter,” HPCL said.
MRPL said it is in constant touch with the Ministry for appointment of requisite number of independent directors on the Board and the Ministry is actively considering the same.
Stating that the non-compliance was beyond the control of the company, OIL said it has requested the ministry for appointment of independent directors on the board of the company to comply with Regulation 17(1) of the SEBI (LODR) Regulations, 2015. Have done.
Companies had cited similar reasons and remedial action when faced with penalties for non-compliance in the last two quarters.
IOC, ONGC, OIL, GAIL, BPCL, HPCL and Engineers India Ltd were also equally fined Rs 5,42,800 for the second quarter. ONGC was fined Rs 3.36 lakh, IOC Rs 5.36 lakh and GAIL Rs 2.71 lakh for non-compliance in the April-June quarter. HPCL and BPCL were asked to pay a fine of Rs 3.6 lakh, while Oil India had to pay a fine of Rs 5.37 lakh.
