NALCO Board Formally Seeks Waiver for ₹10.86 Lakh Exchange Penalties
NALCO has formally communicated to stock exchanges seeking waiver of ₹10.86 lakh penalties imposed for non-compliance with SEBI LODR regulations. The company's board, in its 362nd meeting, directed management to pursue penalty waivers while emphasizing its CPSE status where director appointments are controlled by the President of India, not the company.
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NALCO (National Aluminium Company Limited) has formally communicated to stock exchanges seeking waiver of penalties imposed for non-compliance with SEBI regulations. The company's board has taken cognizance of the fines and directed management to pursue penalty waivers, emphasizing its status as a Central Public Sector Enterprise.
Updated Penalty Structure and Board Response
The latest communication reveals updated penalty amounts from both exchanges:
| Exchange | Penalty Amount (including GST) |
|---|---|
| NSE | ₹5.43 lakh |
| BSE | ₹5.43 lakh |
| Total | ₹10.86 lakh |
The penalties relate to non-compliance with Regulation 17(1) of SEBI (LODR) Regulations, 2015 for the quarter ended September 30, 2025. Each exchange imposed a basic fine of ₹4.60 lakh plus 18% GST, totaling ₹5.43 lakh per exchange.
Board Meeting Decisions and Actions
In the 362nd Board meeting held on December 9, 2025, directors formally addressed the penalty issue. The board took the following key decisions:
| Action Taken | Details |
|---|---|
| Government Notification | Informed Ministry of Mines on December 5, 2025 |
| Waiver Application | Submitted to both NSE and BSE on December 5, 2025 |
| Board Resolution | Formal approval to seek penalty waivers |
| Compliance Request | Expedite appointment of independent directors |
Company's Defense Strategy
NALCO has consistently maintained that as a CPSE, director appointments are beyond its control. The company's defense includes:
- Presidential Authority: All directors are appointed by the President of India
- No Company Control: NALCO cannot independently appoint independent directors
- Continuous Follow-up: Regular communication with Administrative Ministry
- Statutory Compliance: Efforts to meet Companies Act 2013 and SEBI LODR requirements
Regulatory Timeline and Communications
The penalty notices were issued by exchanges on November 28, 2025, following which NALCO initiated a structured response:
| Date | Action |
|---|---|
| November 28, 2025 | Penalty notices received from exchanges |
| December 5, 2025 | Ministry notification and waiver applications |
| December 9, 2025 | Board meeting and formal resolution |
| December 30, 2025 | Official communication to exchanges |
The company has requested favorable consideration of its waiver application, emphasizing that the non-compliance stems from circumstances beyond its operational control. NALCO continues to pursue the matter with the Ministry of Mines to expedite the appointment of requisite independent directors to ensure future compliance with all statutory requirements.
Historical Stock Returns for NALCO
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.47% | -0.90% | -11.80% | -23.84% | +42.20% | +195.91% |
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