State-owned aluminium producer National Aluminium Company (Nalco) has been fined Rs 28.62 lakh by the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for failing to comply with multiple corporate governance requirements under the Securities and Exchange Board of India’s (Sebi’s) Listing Obligations and Disclosure Requirements (LODR) Regulations.
Both exchanges have imposed a penalty of Rs 14.31 lakh each, including 18 per cent GST, for non-compliances during the quarter ended June 30, 2026. The notices received by Nalco cite violations of Regulations 17(1), 17(2A), 18(1), 19(1)/19(2), 20(2)/(2A) and 21(2) of the Sebi LODR Regulations, 2015.
The provisions cited by the exchanges cover various requirements relating to the composition and functioning of the board and its committees, putting the spotlight once again on the difficulty public sector enterprises face in maintaining prescribed board structures.
In a regulatory filing, Nalco said it is in the process of representing its position to both exchanges regarding the identified non-compliances. The company has, however, not disclosed any operational impact arising from the penalty, apart from the total financial implication of Rs 28.62 lakh.
The latest action follows an earlier round of penalties imposed by both exchanges on Nalco for failing to appoint the requisite number of independent directors. The company should have the requisite number of independent directors, which is a mandatory corporate governance requirement under Sebi’s listing regulations. NSE and BSE had imposed fines of Rs 5.31 lakh each in that matter.
Based on the amounts disclosed by the company, Nalco now faces total penalties of Rs 39.24 lakh from the two exchanges related to the two sets of corporate governance lapses.
According to experts, governance-related lapses are relevant for listed public sector enterprises, where compliance with board composition requirements can be affected by the process through which directors, including independent directors, are appointed.
“Unlike privately controlled companies, appointments to the boards of government-owned companies involve government nomination and administrative processes, potentially creating delays in filling vacancies. However, the regulatory framework continues to hold listed entities responsible for ensuring compliance with prescribed board and committee requirements,” they said.
The latest penalty comes as the company is expediting its expansion plan across its aluminium business. The Navratna central public sector enterprise is implementing a Rs 30,000 crore expansion plan, including a 0.5 million tonne per annum (mtpa) smelter at its existing Anugul complex, a 1,080 megawatt (Mw) coal-based captive power plant (CPP), and bauxite and coal mine development.
