Power Grid Corporation of India has received official confirmation from the Securities and Exchange Board of India (SEBI) regarding the regulatory relaxation it had sought for specific compliance requirements under the listing regulations. The development represents a significant regulatory accommodation for the state-owned power transmission utility with the relaxation becoming effective from March 2, 2026.

SEBI Confirms Regulatory Relaxation Grant

SEBI has officially granted Power Grid Corporation's request for relaxation from certain provisions under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The regulatory relief was formally communicated through SEBI's correspondence, confirming the company's exemption from specific compliance obligations with a defined implementation timeline.

Specific Compliance Relief Granted

The relaxation covers three specific regulatory provisions under the SEBI LODR framework that the company had sought exemption from:

• Regulation 17(10): Board composition and governance requirements
• Regulation 25(4)(a): Committee-related compliance obligations
• Regulation 25(4)(b): Additional committee governance provisions

The company had formally submitted a comprehensive request to SEBI seeking exemption from compliance with these particular regulations, which the regulatory authority has now officially approved with the relaxation taking effect from March 2, 2026.

Corporate Governance and Disclosure

Power Grid Corporation has maintained transparency by fulfilling its disclosure obligations regarding this regulatory development. The company has informed relevant stakeholders about SEBI's decision to grant the requested relaxation, ensuring compliance with disclosure requirements under the listing regulations.

The regulatory relief provides the state-owned power transmission utility with operational flexibility while maintaining appropriate oversight mechanisms within the revised compliance framework, with the new arrangements becoming operational from the specified effective date.

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.