Coal India Fined ₹10.72 Lakh by NSE and BSE for Board Non-Compliance

State-owned Coal India Ltd (CIL) has been fined ₹10.72 lakh by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for not complying with SEBI’s corporate governance rules. Both exchanges imposed a penalty of ₹5.36 lakh each.

Reason for the Fine

The fine relates to Regulation 17 of SEBI’s LODR rules, which focus on proper board structure and corporate governance. Non-compliance usually means not having enough independent directors, failing to conduct mandatory board meetings, or not meeting special resolution requirements.

CIL’s Response

Coal India clarified that the issue was not due to negligence by its management. The company explained that the appointment of board members is handled by the Government of India, and thus is not under its control. CIL is actively following up with the Coal Ministry for the appointment of independent directors and has also requested a waiver of the penalty.

Current Board Structure

At present, CIL has 6 independent directors on its board. In the past, waiver requests for similar penalties have been accepted by the stock exchanges.

Production Update

Coal India’s production dropped by 6% in April–July 2025, with an output of 229.8 million tonnes compared to 244.3 MT last year. 

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Coal India Share Price Movement

Coal India share price (NSE: COALINDIA) was trading at ₹376.90 on September 1 at 2:24 pm IST, up 0.56% from the previous close. The stock opened at ₹375.30, touched a high of ₹377.80, and a low of ₹375.10 during the session. With a market capitalisation of ₹2.32 lakh crore, the company has a P/E ratio of 7.01 and offers an attractive dividend yield of 7.03%. Its 52-week range shows a high of ₹529.00 and a low of ₹349.25. Investors also benefit from a quarterly dividend payout of ₹6.62 per share.

Conclusion

Coal India, which contributes over 80% of India’s coal production, is under pressure to comply with SEBI’s corporate governance rules while also working to boost coal output to reduce imports. Despite the fine of ₹10.72 lakh, the company continues to seek government support for board appointments.

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