Hyderabad: Bharat Dynamics Limited (BDL) is seeking a waiver after stock exchanges imposed penalties over board composition norms, even as the defence public sector undertaking maintains the issue lies beyond its control.
Exchanges Impose Fine
The National Stock Exchange of India Ltd and BSE Limited, on February 27, 2026, imposed a fine of Rs. 5,42,800 each, inclusive of GST, on BDL for the quarter ended December 31, 2025. The penalty relates to non-compliance under Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company said it received the intimation after office hours on February 27, 2026.
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Board Composition Issue
The non-compliance pertains to the composition of the Board. BDL clarified that the authority to appoint directors rests with the President of India, acting through the Ministry of Defence. The company stated that its Board has no role in the appointment of directors, which it cited as the reason for the compliance gap.
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BDL said it will seek a waiver of the fine levied by NSE and BSE, citing the impossibility of compliance as per the policy for exemption of fines. The company also indicated it will continue to remain non-compliant with Regulation 17 of SEBI LODR until the requisite number of Independent Directors are appointed by the Government. 2, 2026.
The development highlights governance challenges at state-run companies where board appointments depend on government processes, even as compliance requirements remain binding under market regulations.
Disclaimer: This article is based solely on the official stock exchange filing made by Bharat Dynamics Limited dated March 2, 2026, and does not include information from any other sources.