IOC, GAIL, ONGC fined 4th time for director lapses
OIL & GAS

IOC, GAIL, ONGC fined 4th time for director lapses

State-owned oil and gas giants, including Indian Oil, ONGC, and GAIL (India), have received fines for the fourth consecutive quarter due to their failure to meet listing requirements regarding the necessary number of directors on their boards.

According to stock exchange filings, stock exchanges imposed a total fine of Rs 3.4 million on oil refining and fuel marketing giants Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum Corporation (BPCL), explorers Oil and Natural Gas Corporation (ONGC) and Oil India (OIL), gas utility GAIL, and refiner Mangalore Refinery and Petrochemicals (MRPL) for not fulfilling the listing requirement in the January-March quarter.

The companies, in separate filings, disclosed the fines imposed by the BSE and NSE for either lacking the required number of independent directors or the mandated women director in the quarter ended March 31, 2024, but emphasized that the appointment of directors was made by the government, and they had no involvement in it.

They had previously faced fines for the same reason in the preceding three quarters as well.

In separate filings, IOC, HPCL, BPCL, GAIL, OIL, and MRPL stated that they had been fined Rs 536,900 each for the fourth quarter, while ONGC faced a fine of Rs 182,900.

Listing norms mandate companies to have independent directors in the same proportion as executive or functional directors and to have at least one woman director on the board.

ONGC mentioned that it was fined due to its board lacking one independent director.

IOC stated that "the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India, and hence the shortfall in independent directors, including the non-appointment of a women independent director on the board of the company during the quarter ended March 31, 2024, was not due to any negligence/default by the company."

"Accordingly, IndianOil should not be held liable to pay the fines, and the same should be waived-off," IOC added.

The company highlighted that it regularly takes up the appointment of independent directors on the company board with the parent ministry and that it "had received similar notices from the BSE and NSE in the past imposing fines, and waiver requests from the company were considered favorably by the exchanges."

HPCL and BPCL made similar statements, while GAIL remarked that appointments are beyond the purview/control of company management. OIL mentioned that it has requested the ministry for the appointment of independent directors.

MRPL noted that it has been continuously following up with the ministry for the appointment of the requisite number of independent directors on the board, and the same has been under active consideration.

The companies were fined Rs 5,42,800 each for the third quarter (October-December 2023) and faced a similar fine for the second quarter (July-September 2023).

State-owned oil and gas giants, including Indian Oil, ONGC, and GAIL (India), have received fines for the fourth consecutive quarter due to their failure to meet listing requirements regarding the necessary number of directors on their boards. According to stock exchange filings, stock exchanges imposed a total fine of Rs 3.4 million on oil refining and fuel marketing giants Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), and Bharat Petroleum Corporation (BPCL), explorers Oil and Natural Gas Corporation (ONGC) and Oil India (OIL), gas utility GAIL, and refiner Mangalore Refinery and Petrochemicals (MRPL) for not fulfilling the listing requirement in the January-March quarter. The companies, in separate filings, disclosed the fines imposed by the BSE and NSE for either lacking the required number of independent directors or the mandated women director in the quarter ended March 31, 2024, but emphasized that the appointment of directors was made by the government, and they had no involvement in it. They had previously faced fines for the same reason in the preceding three quarters as well. In separate filings, IOC, HPCL, BPCL, GAIL, OIL, and MRPL stated that they had been fined Rs 536,900 each for the fourth quarter, while ONGC faced a fine of Rs 182,900. Listing norms mandate companies to have independent directors in the same proportion as executive or functional directors and to have at least one woman director on the board. ONGC mentioned that it was fined due to its board lacking one independent director. IOC stated that the power to appoint directors (including independent directors) vests with the Ministry of Petroleum and Natural Gas, Government of India, and hence the shortfall in independent directors, including the non-appointment of a women independent director on the board of the company during the quarter ended March 31, 2024, was not due to any negligence/default by the company. Accordingly, IndianOil should not be held liable to pay the fines, and the same should be waived-off, IOC added. The company highlighted that it regularly takes up the appointment of independent directors on the company board with the parent ministry and that it had received similar notices from the BSE and NSE in the past imposing fines, and waiver requests from the company were considered favorably by the exchanges. HPCL and BPCL made similar statements, while GAIL remarked that appointments are beyond the purview/control of company management. OIL mentioned that it has requested the ministry for the appointment of independent directors. MRPL noted that it has been continuously following up with the ministry for the appointment of the requisite number of independent directors on the board, and the same has been under active consideration. The companies were fined Rs 5,42,800 each for the third quarter (October-December 2023) and faced a similar fine for the second quarter (July-September 2023).

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement