Mahanagar Telephone Nigam Limited (MTNL) has informed stock exchanges about the extension of additional charge of Director (Finance) post assigned to Shri Rajiv Kumar from Bharat Sanchar Nigam Limited (BSNL).

Cabinet Committee Approves Extension

The Appointments Committee of the Cabinet has provided ex-post facto approval for extending Shri Rajiv Kumar's additional charge as Director (Finance) at MTNL. The extension covers a period of one year effective December 1, 2025, or until further orders, whichever comes earlier.

Regulatory Compliance

MTNL has disclosed this information in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, regarding disclosure of events or information. The company communicated the development to both BSE Limited and National Stock Exchange of India Limited on March 3, 2026.

The Department of Telecommunications, Ministry of Communications, Government of India, issued the formal order dated March 3, 2026, conveying the Cabinet's approval for the extension.

Compensation Structure

During the period of holding additional charge, Shri Rajiv Kumar will not be entitled to any additional remuneration beyond his existing compensation as Director (Finance) at BSNL. This arrangement continues the cost-effective approach for MTNL's senior management structure.

Previous Arrangement

This extension follows MTNL's earlier communication dated November 28, 2025, and continues the arrangement where BSNL's Director (Finance) also handles the finance portfolio at MTNL. The dual role arrangement helps maintain operational continuity across both government telecommunications enterprises.

Mahanagar Telephone Nigam Limited (MTNL) has received penalty notices from both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for non-compliance with board composition requirements under SEBI regulations. The telecommunications PSU disclosed the fines in a regulatory filing dated February 28, 2026, in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.

Fine Details and Regulatory Violations

Both exchanges imposed identical fines on MTNL for violations of Regulation 17(1) of SEBI (LODR) Regulations, 2015, specifically related to non-compliance with board composition requirements. The fines were communicated through letters dated February 27, 2026.

Company's Response and Justification

MTNL has attributed the non-compliance to its unique structure as a Public Sector Undertaking. The company emphasized that all board appointments, including independent directors, are made by the Administrative Ministry - the Department of Telecommunications (DoT), Ministry of Communications, Government of India.

The company noted that two independent directors, including one woman independent director, were appointed by DoT through a letter dated April 15, 2025, effective from the same date. MTNL has already approached the Government of India for the appointment of four additional independent directors to achieve full compliance.

Waiver Request and Payment Timeline

MTNL has requested both NSE and BSE to waive the imposed fines, citing the government-controlled nature of board appointments. The company stated there would be no material impact on its financial, operational, or other activities due to these fines.

Both exchanges have provided a 15-day timeline from the notice date for fine payment. The exchanges have also specified that continued non-compliance could result in:

• Freezing of promoter shareholding
• Transfer to Z group for second consecutive quarter violations
• Potential suspension of equity share trading

Compliance Timeline and Penalties

According to the NSE notice, the fine calculation was based on 92 days of non-compliance during the quarter ended December 31, 2025, at Rs 5,000 per day. The exchanges have warned that fines will continue to accrue until compliance is achieved or trading is suspended.

MTNL is required to place this matter before its Board of Directors in the next meeting and inform the exchanges of the board's comments for dissemination.

Source: None/Company/INE153A01019/b1d5bcff-fa83-4e2b-baa1-63f04d83f9d0.pdf