Bharat Heavy Electricals Ltd (BHEL) Shares slipped 1% on 26 February after the company was fined by the Stock Exchanges for non-compliance.

In its regulatory filing, the company said that they had received notice from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), respectively, imposing a fine of Rs 5,42,800 for non-compliance with Regulation 17 (1) of SEBI (LODR) Regulations, 2015 pertaining to composition of Board of Directors as the number of Independent Directors is less than 50% of the actual strength of the company’s Board.

According to the SSOP Circular issued by the bourses, the company is proposing to seek a waiver of fines levied by Stock Exchanges. BHEL is a government company, and the directors, including independent directors, are appointed by the government of India.

Earlier in February, the company received an order from Haryana Power Corporation Ltd for setting up a 1×800 megawatt Ultra Supercritical Expansion Unit at DeenBandhu Chhotu Ram Thermal Power Plant in Yamuna Nagar for a total cost of Rs 5,500 crore.

The company is regularly negotiating with the government of India to appoint a requisite number of independent directors to ensure compliance with the regulations above.

At 3:30 pm, the shares of BHEL closed 0.76% lower at Rs 227.85 on NSE.