Coal India Limited has been fined Rs 5,45,160 by the Bombay Stock Exchange (BSE) for non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations during Q4FY26. The penalty, inclusive of GST, was levied due to violations of regulations concerning board composition and meetings. The company received the notice regarding this action on May 27, 2026.

The exchange identified non-compliance with Regulation 17(1), 18(1), and 19(1) & 19(2) of the SEBI LODR Regulations, 2015. These regulations pertain to the composition of the board of directors, the role of key managerial personnel, and the requirements for board meetings and director participation. The financial impact of this regulatory action is quantified as the imposed fine amount.

Coal India clarified that the non-compliance was neither due to negligence nor within the control of its management. The company stated that as a Government Company under the administrative control of the Ministry of Coal, the appointment of all Board Members is executed by the President of India. Consequently, the appointment of requisite Independent Directors falls outside the purview of the company's management.

The company has indicated that it is regularly following up with the Ministry of Coal to facilitate the necessary appointments. Furthermore, Coal India had requested BSE for a waiver of the penalty, noting that such requests have been considered favorably by exchanges in the past.

Details of Regulatory Action

The Government of India will sell up to a 2% stake in Coal India Limited through an Offer for Sale (OFS) on May 27 and May 29, 2026. The divestment aims to monetise holdings in the public sector undertaking, with a floor price set at ₹412 per equity share. The offer includes a base size of 61,627,283 shares, representing 1.00% of the paid-up equity capital, and an oversubscription option for an additional 1.00%.

Offer Details and Timeline

The OFS will be conducted on a separate window of the BSE and NSE. Non-retail investors can bid on May 27, 2026 (T day), while retail investors and employees can bid on May 29, 2026 (T+1 day). The offer timings are from 9:15 a.m. to 3:30 p.m. Indian Standard Time on both days. Additionally, up to 25,000 equity shares are reserved for eligible employees, subject to a maximum application value of ₹500,000.

Allocation and Bidding Terms

Allocation will be on a price priority basis at multiple clearing prices. A minimum of 25% of the offer shares is reserved for mutual funds and insurance companies. Retail investors are defined as those bidding for shares worth not more than ₹200,000 across exchanges. Non-retail investors must deposit 100% of the bid value upfront, whereas institutional investors have the option to bid without upfront payment. The seller reserves the right to withdraw or cancel the offer prior to opening or if sufficient demand is not met at or above the floor price.

Settlement and Broker Information

Settlement for bids received on T day from non-retail investors with upfront payment will occur on T+1 day. For bids received on T+1 day from retail investors, employees, and non-retail investors carrying forward bids, settlement will take place on T+2 day. Axis Capital Limited, ICICI Securities Limited, JM Financial Institutional Securities Limited, Kotak Securities Limited, and SBICAP Securities Limited are acting as the seller's brokers, with Kotak Securities Limited also serving as the settlement broker.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE522F01014/9195e2d68fa64acb.pdf