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New Delhi — In its latest regulatory action, the National Stock Exchange (NSE) has imposed a fine of ₹5.42 lakh on state-owned Coal India Ltd (CIL) for non-compliance with SEBI Listing Obligations and Disclosure Requirements (LODR).

According to a filing by CIL, the fine pertains to a violation of Regulation 17(1) of the SEBI LODR for the quarter ended September 30, 2025. The exchange’s notice — dated 28 November 2025 — highlighted the company’s failure to meet the required criteria for board composition, particularly in appointing the necessary number of independent directors.

Coal India clarified that the lapse was not due to any negligence or default by its management. In its statement, CIL noted that, as a government-owned entity under the administrative control of the Ministry of Coal, all board appointments are made by the President of India — placing them outside the company’s direct control. The company is actively following up with the ministry to ensure the board is fully compliant.

This is not the first time CIL has faced penalties for similar procedural lapses. In September 2025, both NSE and BSE had imposed a combined fine of ₹10.72 lakh (₹5.36 lakh each) on account of failure to maintain the required number of independent directors — under SEBI’s corporate governance norms.

The recurring fines have sparked criticism from corporate governance experts, who question the effectiveness of compliance oversight in large public sector undertakings. Some analysts argue that such systemic structural issues — especially board appointments managed by the government — make regulatory compliance more challenging and call for reforms to ensure accountability and transparency.

For its part, Coal India has requested the NSE to waive the penalty, citing past precedents in which the exchange granted waivers under similar circumstances.

As one of India’s largest coal producers — contributing over 80% of domestic coal output — CIL’s governance practices remain under close scrutiny, particularly as the nation aims to strengthen accountability and improve compliance across public sector enterprises.