Public sector coal mining giant Coal India Limited (CIL) has been fined Rs. 10.72 lakh by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for failing to comply with SEBI’s corporate governance norms. The penalty pertains to the June quarter, during which the company did not have the required number of independent directors on its board.
In a regulatory filing on 01st September 2025, CIL said it received notices from both exchanges regarding non-compliance with Rule 17 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations. The exchanges noted that the company’s board structure did not meet the mandated standards on independent directors.
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Coal India, in its statement, maintained that the lapse was not due to negligence or oversight. It said all board-level appointments are made by the President of India, leaving the management outside the process of induction of independent directors. The company also noted that efforts to fulfil compliance requirements have been continuous.
The episode has once again drawn attention to governance issues in state-run companies, where board appointments are routed through the government. Market experts said that such structural limitations often lead to recurring compliance gaps. Coal India said it will continue to pursue measures to ensure alignment with SEBI norms.
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