MSTC has been levied a penalty of ₹5,36,900 each by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for non-compliance with board composition regulations.

The fines were imposed for the quarter ended June 30, 2026, citing violations under Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The stock exchanges communicated the penalties via email on August 25, 2026.

Regulatory Context

MSTC Limited, a Mini Ratna Category-I public sector undertaking under the Ministry of Steel, clarified that the non-compliance stemmed from delays in the appointment of independent directors. As a government enterprise, the company stated it has no role in appointing directors unless nominated by the Government of India through its administrative ministry.

The company emphasized that the lapses were not due to negligence or default by its management. It noted continuous efforts to meet compliance requirements and regular follow-ups with the Ministry of Steel regarding the appointments.

Resolution and Compliance Status

The Bureau of Administrative Reforms (BLA) cell of the administrative ministry issued orders on July 14, 2026, nominating Shri Siraiong Singpho and Shri Niwas Mandal as Non-Official Independent Directors. Both directors were appointed to the board for a three-year term effective July 18, 2026.

Following these appointments, MSTC confirmed that it is now fully compliant with the provisions of Regulation 17 of the SEBI LODR Regulations pertaining to board composition. The company has requested the stock exchanges to waive the levied fines.

Financial Impact

MSTC stated that the fines imposed by NSE and BSE have no impact on its financial position, operations, or other activities. The disclosure was made pursuant to Regulation 30 read with Para-A of Part-A of Schedule-III of the SEBI LODR Regulations, 2015.

MSTC Limited has scheduled its 61st Annual General Meeting (AGM) for Thursday, September 24, 2026, at 11:00 am. The meeting will be conducted through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) in compliance with the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The announcement aligns with Ministry of Corporate Affairs (MCA) General Circular no. 03/2025 dated September 22, 2025, which permits virtual AGMs. The company published public notices in Financial Express, Jansatta, Prabhat Khabar, and Arthik Lipi on August 20, 2026, to inform stakeholders of the upcoming proceedings.

E-voting and Participation Details

Shareholders holding shares as on the record date will have the opportunity to cast their votes remotely. The remote e-voting window opens on Sunday, September 20, 2026, at 9:00 am and closes on Wednesday, September 23, 2026, at 5:00 pm. Voting facilities will also be available during the live AGM session.

Key logistical details for shareholders include:

Members are required to update their email addresses to receive the electronic copy of the Notice of AGM and the Annual Report for FY26. Physical share holders must submit Form ISR-1 to MSTC Limited or its Registrar and Transfer Agent, Bigshare Services Private Limited, to register email IDs. Demat account holders should update details with their respective Depository Participants.

Dividend and Bank Details

To receive dividends directly into bank accounts via NECS, shareholders must ensure their bank details are registered. Physical share holders need to submit Forms ISR-1 and ISR-2, while demat holders must coordinate with their Depository Participants. Login credentials for e-voting will be sent via email after successful registration.

Ajay Kumar Rai, Company Secretary and Compliance Officer, issued the notice from Kolkata on August 20, 2026. The full notice and annual report are accessible on the company’s website and stock exchange portals.