Power Grid Corporation of India has disclosed receiving regulatory fines from both major Indian stock exchanges for non-compliance with board composition requirements. The company received notices dated 27th February, 2026, from BSE Limited and National Stock Exchange of India Limited regarding violations during the quarter ended 31st December, 2025.

Regulatory Action Details

Both exchanges have imposed identical penalties on the power transmission company for failing to comply with SEBI LODR Regulation 17(1), which governs board composition requirements. The financial implications and regulatory specifics are outlined below:

Government Company Constraints

POWERGRID has highlighted its unique position as a Government Company under Section 2(45) of the Companies Act, 2013. This status creates specific constraints in board appointments, as the power to appoint functional directors, official part-time directors, and non-official part-time directors (Independent Directors) vests exclusively with the President of India.

The company has escalated the matter to its Administrative Ministry, the Ministry of Power, for filling up the vacant Independent Director positions. This procedural requirement often leads to delays in board reconstitution for government-controlled entities.

Company Response and Waiver Request

In response to the regulatory action, POWERGRID has taken proactive steps to address the situation. On 28th February, 2026, the company submitted formal requests to both BSE and NSE seeking waiver of the imposed fines. The waiver requests specifically cite the non-compliance with SEBI LODR Regulation 17(1) and the company's constraints as a government entity.

The company's disclosure, signed by Company Secretary and Compliance Officer Satyaprakash Dash, emphasizes the procedural challenges faced by government companies in maintaining board composition compliance due to the centralized appointment process.

Regulatory Compliance Framework

This disclosure falls under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates companies to inform exchanges about material events and regulatory actions. The company has provided comprehensive details as required under Schedule III, Part A of the regulations, ensuring transparency with stakeholders about the regulatory action and its financial implications.

Power Grid Corporation of India received a significant boost to its investment capabilities as the Cabinet Committee on Economic Affairs (CCEA) approved enhanced delegation powers. The approval increases the company's equity investment threshold from Rs.5,000 crore to Rs.7,500 crore per subsidiary, while maintaining the existing net worth cap at 15%.

CCEA Approval Details

The Cabinet Committee on Economic Affairs granted the enhanced delegation under the existing guidelines of the Department of Public Enterprises applicable to Maharatna CPSEs. The approval represents a substantial expansion in POWERGRID's financial autonomy while maintaining prudent investment limits.

Strategic Impact on Transmission Infrastructure

The enhanced investment powers position POWERGRID to participate more actively in capital-intensive transmission projects. As the largest and most experienced transmission service provider in the country, the company can now bid for major infrastructure developments including:

• Ultra High Voltage Alternating Current (UHVAC) transmission networks
• High Voltage Direct Current (HVDC) transmission systems
• Critical transmission projects under Tariff Based Competitive Bidding (TBCB)

Renewable Energy Expansion Support

The approval directly supports India's ambitious renewable energy targets, enabling POWERGRID to expand investments in its core business and facilitate the evacuation of renewable energy capacity. This enhancement contributes to achieving the national target of 500 GW from non-fossil-based sources.

Market Competition and Price Discovery

The increased investment threshold is expected to broaden competition in the Tariff Based Competitive Bidding process for transmission project selection. This enhanced competition mechanism aims to ensure better price discovery and ultimately contribute to the availability of affordable and clean energy for consumers.