Mahanagar Telephone Nigam has funded the designated escrow account for the 7th semi-annual interest payment regarding its 7.87% MTNL Bond Series VII B. The interest amount is due on June 1, 2026. The funding was completed on May 27, 2026, ensuring the payment obligation is met for the upcoming due date.

Compliance and Filing Details

The disclosure was made to comply with Regulation 30 and 51 of the SEBI (LODR) Regulations, 2015. The escrow account is maintained with the Bank of India. The bond series carries the identification INE153A08113.

Bond Payment Schedule

Mahanagar Telephone Nigam Limited has been fined a total of ₹5.31 lakh by the National Stock Exchange of India and BSE Limited for non-compliance with board composition requirements. The penalties, comprising a basic fine of ₹4.50 lakh and GST of ₹81,000, were imposed on May 27, 2026, for violations of Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated that the non-compliance arose because appointments, including those of independent directors, are managed by the Administrative Ministry, specifically the Department of Telecommunications, Ministry of Communications, Government of India.

The exchanges issued separate notices to Mahanagar Telephone Nigam regarding the failure to adhere to the mandated composition of the Board. The fine was calculated at a rate of ₹5,000 per day for a period of 90 days of non-compliance ending in March 2026. While the company acknowledged the imposition of fines, it confirmed that there is no material impact on its financial, operational, or other activities.

Details of Regulatory Violations

The non-compliance specifically relates to Regulation 17(1), which mandates the composition of the Board of Directors. The company disclosed that the matter regarding the appointment of six independent directors has been taken up with the Government of India. Consequently, Mahanagar Telephone Nigam is requesting both NSE and BSE to waive the fines levied.

Waiver Request and Compliance Timeline

In its filing, the company emphasized its status as a Public Sector Undertaking (PSU), noting that it lacks direct control over board appointments. The Department of Telecommunications is responsible for these appointments. Mahanagar Telephone Nigam has formally approached the exchanges to consider a waiver of the penalties based on these administrative constraints.

The exchanges have instructed the company to pay the fines within 15 days of the notice date. Failure to remit the payment could result in action related to the freezing of the promoter's shareholding and other securities. Additionally, the exchanges warned that a second consecutive quarter of non-compliance for specific regulations, including Regulation 17(1), could lead to the transfer of the company to the Z group and potential suspension of trading in its equity shares.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE153A01019/8262c8e2f3254b0b.pdf