MSTC Limited shareholders approved a special resolution to alter the Objects Clause of the company’s Memorandum of Association. The postal ballot voting process concluded on August 27, 2026, with the resolution passing by the requisite majority.

The company, a Government of India enterprise, conducted the vote through remote e-voting from July 28, 2026, to August 27, 2026. Shareholders on record as of July 24, 2026, were eligible to participate. The scrutinizer’s report confirms the process adhered to Section 110 of the Companies Act, 2013, and relevant SEBI regulations.

Voting Breakdown

A total of 442 valid folios cast votes representing 48,434,581 equity shares, accounting for 68.7991% of the outstanding shares held by eligible shareholders.

Promoter shareholders voted unanimously in favour, casting all 45,580,800 shares they hold. Public institutional investors also supported the resolution entirely, with 100% of polled votes favouring the change.

Among public non-institutional shareholders, participation was lower, with only 1.0538% of shares polled. However, even within this group, 98.9638% of votes were cast in favour. Only 2,253 votes were recorded against the resolution across all categories.

What the Numbers Show

The near-unanimous support highlights strong alignment between promoters and institutional investors on the proposed constitutional change. While retail participation was minimal at roughly 1% of eligible shares, the dissenting votes remained negligible, comprising just 0.0047% of total votes polled. This suggests no significant opposition to the alteration of the company’s objects clause.

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.