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IOC, GAIL, ONGC Fined Repeatedly for Director Appointment Failures

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In Short:

Major state-owned oil and gas companies in India have been fined for the fourth consecutive quarter for not meeting listing requirements. The fines, totaling ₹34 lakh, were imposed by stock exchanges for not having the required number of directors on their boards, including independent directors and at least one woman director. The companies claim that the government is responsible for appointing directors, not them.


Oil and Gas Giants Fined for Fourth Consecutive Quarter

Big news in the oil and gas industry! State-owned giants like IndianOil, ONGC, and GAIL (India) Ltd have been hit with fines yet again for not meeting listing requirements. This marks the fourth straight quarter of penalties for failing to have the necessary number of directors on their boards.

Fines Imposed

The stock exchanges have imposed a total fine of ₹34 lakh on companies such as IOC, HPCL, BPCL, ONGC, OIL, GAIL, and MRPL. They were penalized for not meeting the listing requirement in the January-March quarter. The filings from the stock exchanges revealed the details of the fines.

Previous Quarters

This is not new for these companies as they have faced fines for the same reason in the past three quarters as well. It seems like a recurring issue that needs to be addressed.

Each of the companies mentioned above had to pay fines ranging from ₹1,82,900 to ₹5,36,900 for the fourth quarter. The listing norms call for independent directors to be in proportion with executive directors and mandate at least one woman director on the board.

Company Responses

Many of the companies clarified that the appointment of directors is done by the government, and they do not have a say in it. They have been requesting the ministry for the necessary appointments.

ONGC mentioned that it was fined for having a shortfall in independent directors on its board. IOC stated that the power to appoint directors lies with the Ministry of Petroleum and Natural Gas and requested for the fines to be waived off.

HPCL, BPCL, and GAIL made similar statements, emphasizing that appointments are beyond their control. OIL and MRPL also expressed their efforts in following up with the Ministry for the necessary appointments.

Past Fines

These companies were fined for similar reasons in the previous quarters as well. For the third quarter, fines were imposed ranging from ₹5,42,800 to ₹5,37,000. In the second quarter, fines were issued too.

Conclusion

It’s clear that these companies need to work on meeting the listing requirements to avoid fines in the future. Let’s see how they address this issue moving forward!

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