Power Grid Corporation, a leading state-owned electric utility company, is currently under scrutiny for failing to meet corporate governance standards as mandated by market regulators. The company was reprimanded for not having the required number of independent directors, including a woman director, on its board for the quarter ending in September.

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) issued notices to Power Grid Corporation on Monday, highlighting the company’s non-compliance with Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) regulations. Both exchanges imposed fines totaling Rs 5,42,800 each.

In response to these sanctions, Power Grid Corporation sought exemptions from the BSE and NSE on Thursday, citing its unique position as a government entity. The appointment of directors to the company’s board requires Presidential authority as per Section 2(45) of the Companies Act. The firm is actively engaging with the Ministry of Power to address the board vacancies and contested the total amount of fines levied by the exchanges.

This development has put a spotlight on the governance practices of public sector enterprises and their adherence to market regulatory standards. Power Grid Corporation has expressed its commitment to resolving these issues promptly and restoring compliance with SEBI’s regulations.