SJVN Fined by Exchanges for Non-Compliance with SEBI Regulations

SJVN Limited has been fined by both the National Stock Exchange of India (NSE) and BSE Limited for failing to comply with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The non-compliance issues mainly relate to board composition and corporate governance requirements. 

Details of Non-Compliance and Fines 

The primary non-compliance pertains to Regulation 17(1) of the SEBI (LODR) Regulations, which mandates specific board composition, including the appointment of a woman director.  

For the quarter ending September 2025, BSE imposed a basic fine of ₹4,60,000, calculated at ₹5,000 per day, along with ₹82,800 as GST at 18%, totalling ₹5,42,800 as of November 28, 2025. 

NSE issued a similar notice, indicating that SJVN remained non-compliant with Regulation 17(1) for 92 days up to September 30, 2025, attracting a fine of ₹4,60,000 plus GST of ₹82,800, amounting to a total fine of ₹5,42,800. 

Government Company Status and Board Appointment Challenges 

SJVN Limited, a Government Company under Section 2(45) of the Companies Act, 2013, stated that the power to appoint directors rests with the President of India through the Ministry of Power. This limits the company’s ability to independently appoint directors, including independent and woman directors, as required by SEBI’s listing obligations. 

The company has made several requests to the Ministry of Power and the Department of MPP and Power, Government of Himachal Pradesh, to expedite the appointment of independent directors. These appointments are crucial for compliance with SEBI’s Listing Regulations, especially concerning board composition, audit committee, and related governance structures. 

Consequences and Compliance Requirements 

BSE and NSE have instructed SJVN to ensure compliance and pay the fines within 15 days. Failure to comply may result in the freezing of promoter shareholdings and shifting of SJVN’s equity shares to the Z Group, potentially leading to suspension of trading. 

Both exchanges require SJVN to place the non-compliance issues before its Board and submit the Board’s comments back to the exchanges. The notices also provide details for fine payment and conditions for seeking a waiver of fines. 

Read More: NLC India Renewables Signs 200 MW Wind Power PPA With SJVN! 

SJVN Share Price Performance  

As of December 19, 2025, at 3:30 PM, SJVN share price on NSE was closed at ₹72.84 up by 3.51% from the previous closing price. 

Conclusion 

SJVN Limited faces significant fines from NSE and BSE for non-compliance with SEBI regulations, primarily due to challenges in board composition. The company is working with government authorities to address these issues and ensure compliance. 

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