KIOCL requests stock exchanges to waive penalties of about Rs 17 lakh

State-owned KIOCL on Thursday requested stock exchanges BSE, NSE and MSE to waive about Rs 17 lakh fine imposed on the company for non-compliance with norms related to appointment of independent directors.

The fine levied by exchanges has no impact on the financial, operation or other activities of the company, KIOCL said in a BSE filing.

The non-compliance with norms on the composition of the board was neither due to any negligence/default by the company nor within the control of KIOCL's management, and continuous efforts were made to meet the compliance requirements.

"NSE, BSE and Metropolitan Stock Exchange of India (MSE) have levied fine of Rs 5,42,800 each (incl GST) for the non-compliance with regulation-17(1) i.e., half of the board was not independent, for the quarter ended September 30, 2023," KIOCL said.

It further said the company is a government-owned entity where President of India has the power to appoint directors (including independent director) on the board.

All directors in KIOCL are appointed by Government of India (GoI) through its administrative ministry -- Ministry of Steel (MoS) -- and KIOCL has no role to play in the appointment of any director unless nominated by GoI, it explained.

The government has been requested for nomination of requisite number of independent directors on the board of the company. Therefore, all the three exchanges have been requested to waive the fine levied on the company, it said.

KIOCL operates a 3.5 MTPA iron-oxide pellet plant besides a blast furnace unit to manufacture 2.16 lakh tonne per annum pig iron at Mangaluru, Karnataka.