BSE and NSE Levy Penalties on NTPC, SJVN, and REC for Listing Non-Compliance

Major stock exchanges BSE and NSE have together imposed penalties amounting to ₹59.14 crore on three public sector power companies: NTPC, REC, and SJVN. The disciplinary action stems from breaches of SEBI listing regulations, specifically concerning the composition of boards of directors and associated committees.

In a regulatory filing, NTPC stated that it received notices from both the BSE and NSE, with each exchange imposing a penalty of ₹5,36,900, inclusive of GST. The exchanges cited non-compliance with Regulation 17(1) of the listing regulations. In its response to the bourses, NTPC noted that it is a government company. According to its Articles of Association, the power to appoint or remove directors rests with the President of India through the administrative ministry, which is the Ministry of Power. Consequently, the power giant has requested the exchanges to waive the fines.

Similarly, SJVN reported that both BSE and NSE separately imposed a fine of ₹13,44,020 for non-compliance with specific SEBI listing regulations. SJVN stated that it will also submit a request to both exchanges for a waiver, citing the same structural provision where the power to appoint or remove directors vests with the President of India acting through the Ministry of Power. The company added that it is actively pursuing the matter with the Ministry of Power to appoint the requisite number of independent directors on its board to ensure compliance with SEBI listing norms.

Meanwhile, REC received notices from NSE and BSE regarding non-compliance during the quarter ended June 30, 2026. The notices pertain to provisions of the listing regulations regarding the composition of the board of directors and its committees. Each of the two bourses has imposed a fine of ₹10,77,340 on REC. REC operates as an infrastructure finance company, providing long-term loans and other financing products to state, central, and private enterprises for the creation of infrastructure assets across the country.

"The penalties imposed on public sector power companies like NTPC, REC, and SJVN highlight the strict enforcement of corporate governance and board composition norms by stock exchanges. While these enterprises operate under unique governance structures where board appointments are managed by the central government, regulatory compliance remains mandatory for all listed entities. Navigating these regulatory requirements while managing administrative frameworks will be critical for public sector undertakings going forward." — Dr. Shishir Gupta, Founder & CEO, StartupLanes