News Stocks BSE and NSE Impose ₹9.77 Lakh Fine Each on Hindustan Copper for Board Composition Non-ComplianceBSE and NSE Impose ₹9.77 Lakh Fine Each on Hindustan Copper for Board Composition Non-Compliance
Hindustan Copper Limited faces ₹9,77,040 fines each from BSE and NSE for non-compliance with SEBI regulations on board composition and committee constitution during Q3 FY26. The violations include non-compliance with board composition, audit committee, and nomination committee requirements for 92 days. The company attributes the issue to its government status where director appointments require Presidential approval through Ministry of Mines, and plans to seek fine waiver once compliance is achieved.
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Hindustan copper has been penalized by both major stock exchanges for regulatory non-compliance, with BSE and NSE each imposing fines of ₹9,77,040 on the copper mining company. The penalties were levied on February 27, 2026, for violations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Regulatory Violations and Fine Details
The fines were imposed for non-compliance with three key regulations during the quarter ended December 2025:
| Regulation | Violation Details | Fine Per Day | Days of Non-Compliance | Basic Fine (₹) |
|---|---|---|---|---|
| Regulation 17(1) | Board composition requirements | ₹5,000 | 92 | 4,60,000 |
| Regulation 18(1) | Audit committee constitution | ₹2,000 | 92 | 1,84,000 |
| Regulation 19(1)/19(2) | Nomination and remuneration committee constitution | ₹2,000 | 92 | 1,84,000 |
The total basic fine amounts to ₹8,28,000, with GST at 18% adding ₹1,49,040, bringing the total fine payable to ₹9,77,040 from each exchange.
Company's Response and Justification
Hindustan Copper has cited its status as a government company as the primary reason for the non-compliance. According to the company's disclosure, the power of appointment of directors on its board is vested with the President of India, acting through the Ministry of Mines, Government of India, as per its Articles of Association.
Financial and Operational Impact
The company has stated that there is no impact on its financial, operational, or other activities due to this regulatory action. Hindustan Copper has already written to the Ministry of Mines for the appointment of the required number of directors, and the matter is currently under consideration.
Compliance Timeline and Consequences
Both exchanges have mandated that the company must ensure compliance and pay the fines within 15 days from the date of the notice. The exchanges have warned of escalating consequences, including:
- Freezing of entire promoter shareholding in case of non-payment
- Potential transfer to Z group for second consecutive quarter non-compliance
- Possible suspension of trading of equity shares
Future Course of Action
The company plans to seek waiver of fines from both BSE and NSE once the required number of directors are appointed to the board. The regulatory action and subsequent exchange actions are required to be placed before the Board of Directors in the next meeting, with board comments to be communicated to the exchanges for dissemination.
Source: None/Company/INE531E01026/a4f6b38d-ef40-4f70-8e9f-87b719358c2d.pdf
Historical Stock Returns for Hindustan Copper
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.99% | +0.47% | +5.67% | +144.95% | +166.28% | +277.91% |
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