Chennai, Feb 23 (IANS): Public sector Hindustan Aeronautics Ltd (HAL) has received penalty notices of Rs 542,800 each from India’s two stock exchanges-BSE and NSE- for not having sufficient number of independent directors on its Board.

In a regulatory filing on Friday, HAL said it has received notices from NSE and BSE for imposing the penalty of Rs. 542,800/- each for the quarter ended 31st December, 2023, for non-compliance of Regulation 17(1) in respect of composition of Board of Directors due to insufficient number of Independent Directors.

The company said it is owned by the Indian government under Ministry of Defence.

“Since, appointment of Independent Directors in the Government Companies are being made by the concerned Administrative Ministry of the Government of India, multiple requests were made to Ministry of Defence (MoD) for filling the vacant posts of Independent Directors in the Company,” HAL said.

HAL said that since the matter was beyond the control of the Company, applications for waiver of fines under Sl. No. 3(a) of the Policy of exemption of fines levied as per the provisions of SEBI SOP Circular, were filed with NSE, Designated Stock Exchange for the purpose, representing our case, however it was directed to put up the case only after compliance.