NLC India Limited has been penalized by BSE Limited with a fine of Rs 5,42,800 for non-compliance with board composition requirements under SEBI regulations. The Navratna government enterprise disclosed this development through an official intimation dated February 28, 2026.

Regulatory Non-Compliance Details

The fine was imposed for violations of Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The specific non-compliance relates to board composition requirements, including the failure to appoint a women director as mandated under the regulations.

Company's Response and Waiver Request

NLC India has formally requested BSE to grant a waiver of the imposed fine through a letter dated February 28, 2026. The company has cited specific grounds for seeking relief from the penalty:

• Government Company Status: As a government company, the power to appoint directors on the board vests with the President of India
• Administrative Coordination: The Ministry of Coal, being the administrative ministry, is periodically informed about the requirement of appointing requisite independent directors
• Beyond Management Control: The non-compliance was neither attributable to negligence nor within the control of company management

Financial Impact Assessment

The company has clarified that the regulatory fine will have limited financial implications. There is no impact on the company's operations or other business activities due to the imposition of the fine. The total financial impact is restricted to the penalty amount of Rs 5,42,800 imposed by BSE.

Regulatory Framework Context

The intimation was made under Regulation 30 of SEBI LODR Regulations, 2015, and in compliance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. This demonstrates the company's commitment to maintaining transparency with stakeholders regarding regulatory matters, even while seeking relief from the imposed penalty.

NLC India Limited has received a credit rating reaffirmation from ICRA Limited for its Non-Convertible Debentures, maintaining the company's strong credit profile. The rating agency reviewed and reaffirmed the existing assessment for the government enterprise's debt instruments.

Rating Details and Financial Instruments

ICRA Limited conducted a comprehensive review and maintained its highest rating for NLC India's debt securities. The rating reaffirmation covers a substantial amount of the company's borrowing program.

Regulatory Compliance and Disclosure

The company communicated this development to both major stock exchanges on February 23, 2026, ensuring compliance with regulatory requirements. The disclosure was made under Regulation 30 & 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The communication was addressed to:

• National Stock Exchange of India Ltd. (Scrip Symbol: NLCINDIA)
• BSE Ltd. (Scrip Code: 513683)

Company Profile and Corporate Structure

NLC India Limited operates as a 'Navratna' Government of India Enterprise, reflecting its status as one of the premier public sector undertakings. The company maintains its registered office in Chennai and corporate office in Neyveli, Tamil Nadu.

Key corporate details include:

• CIN: L93090TN1956GOI003507
• Registered Office: No.135, EVR Periyar High Road, Kilpauk, Chennai-600 010
• Corporate Office: Block-1, Neyveli-607 801, Cuddalore District, Tamil Nadu

The rating reaffirmation by ICRA Limited demonstrates the continued confidence of credit rating agencies in NLC India's financial strength and ability to service its debt obligations. The AAA rating with stable outlook indicates the highest degree of safety regarding timely servicing of financial obligations, providing assurance to investors and stakeholders about the company's creditworthiness.