MSTC Limited has received a regulatory fine from BSE Limited for non-compliance with board composition requirements during the quarter ended 31st December, 2025. The company disclosed this development through an official communication dated 2nd March, 2026, pursuant to SEBI listing regulations.

Fine Details and Regulatory Context

BSE Limited imposed the fine through an email dated 27th February, 2026, citing non-compliance with Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The penalty pertains specifically to board composition requirements that were not met during the third quarter of fiscal year 2026.

Company's Position and Clarification

MSTC Limited emphasized its unique status as a Mini Ratna Category-I Public Sector Undertaking under the administrative control of the Ministry of Steel, Government of India. The company clarified that the President of India holds the authority to appoint all directors, including independent directors, on MSTC's board.

The key aspects of the company's position include:

• All director appointments are made by the Government of India through the Ministry of Steel
• MSTC Limited has no role in director appointments unless nominated by the government
• The company has been continuously following up with the Ministry of Steel for independent director appointments
• No desired nominations have been received from the Ministry to date

Impact Assessment and Waiver Request

MSTC has formally requested BSE to waive the imposed fine, arguing that the non-compliance circumstances were beyond the company's control. The management stated that the violations were neither due to negligence nor default by the company, but rather stemmed from delays in government appointments.

The company has assured that the BSE fine will have no impact on its financial, operational, or other business activities. This disclosure was made to keep stakeholders informed about the regulatory development while maintaining transparency in compliance matters.

Corporate Governance Context

As a government-controlled enterprise, MSTC operates under a different governance framework compared to private companies. The appointment process for independent directors involves government procedures that can extend beyond the company's direct influence, creating potential compliance challenges with stock exchange requirements.

The company continues its efforts to meet regulatory compliance requirements while working within the constraints of its government ownership structure and appointment processes.

MSTC Limited has become the L1 bidder for a tender issued by Coal India Limited for the appointment of an External Service Provider for conducting Linkage Auction for Non-Regulated Sector (NRS), according to a regulatory disclosure filed with stock exchanges.

Contract Details

The company disclosed to BSE and NSE that it has secured the top bidder position for Coal India's tender hosted on the Government e-Marketplace (GeM) portal. The contract involves providing comprehensive services for NRS linkage auctions through MSTC's platform for a three-year period.

Service Scope

Under the contract terms, MSTC Limited will be responsible for providing the complete range of associated services for NRS linkage auctions. This includes conducting auctions and executing agreements through the MSTC platform, covering the entire process from initiation to completion.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the promoter group has no interest in Coal India Limited, and the contract does not fall within related party transactions.

Business Implications

This development strengthens MSTC's position as a leading e-commerce and auction service provider in the public sector. The three-year contract with Coal India Limited, one of India's largest coal mining companies, represents a significant business opportunity for MSTC in expanding its auction services portfolio in the coal sector.