Excerpt from Live Mint Article, Published on September 1, 2025
Coal India, the state-owned coal giant, announced it had been fined ₹10.72 lakh for failing to meet SEBI’s board composition standards in the June 2025 quarter. Both the BSE and NSE levied penalties of ₹5.36 lakh each on Coal India, citing non-compliance with Regulation 17 of the SEBI LODR regulations. This rule requires a requisite number of independent directors to ensure better corporate governance. Coal India, which is responsible for more than 80% of India’s coal output, stated the lapse was neither negligent nor intentional, and that appointments are made by the President of India, leaving management with limited control over board composition.
Corporate governance remains critical for public sector units like Coal India, particularly as it manages resources of national importance. The company continues regular follow-ups with the Coal Ministry to expedite the appointment process for independent directors. In the current scenario, Coal India has six independent directors on its board, but regulations may require a larger number based on board size. Past waiver requests to the exchanges have sometimes been approved, underscoring the company’s proactive compliance stance.
Beyond governance, Coal India’s production saw a dip of six percent between April and July 2025, attributed by analysts to routine monsoon disruptions. Despite government efforts to increase domestic output, the company produced 229.8 million tonnes, compared to 244.3 million tonnes in the same period last year. The situation highlights operational challenges as well as regulatory requirements that Coal India must navigate to maintain compliance and industry leadership.
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