IOC, GAIL, and ONGC were punished for failing to designate directors for the fourth quarter in a row

For the same reason, the corporations were fined for the preceding three quarters.

For the fourth consecutive quarter, state-owned oil and gas conglomerates, such as IndianOil, ONGC, and GAIL (India) Ltd., have faced penalties for not meeting listing criteria related to the minimum number of members on their board.

For failing to meet the listing requirement in the January-March quarter, stock exchanges fined refiner Mangalore Refinery and Petrochemicals Ltd (MRPL), gas utility GAIL, explorers Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL), and giants of the fuel marketing and oil refining industry Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) a total of Rs 34 lakh.

The companies described in separate filings the fines levied by the BSE and NSE for failing to have the required number of independent directors or the required number of women directors during the fourth quarter of the fiscal year 2023–2024 that ended on March 31, 2024. However, they hastily clarified that the government appoints directors, and they had no say in the matter.

For the same reason, the corporations were fined for the preceding three quarters.

In separate filings, IOC, HPCL, BPCL, GAIL, OIL, and MRPL said that they had each been fined Rs 536,900 for the fourth quarter. An Rs 182,900 fine was imposed on ONGC.

Companies must have independent directors in the same percentage as executive or functional directors in order to comply with listing standards. Additionally, they must have a minimum of one female director on the board.

According to ONGC, it has been punished for having too few independent directors on its board.

According to IOC, "the power to appoint directors (including independent directors) vests alongside the Ministry of Petroleum and Natural Gas, Government of India which means the shortfall in independent directors involving non-appointment of women independent director on the board of the company through the quarter ended March 31, 2024 was not due to any negligence/default by the company." "Consequently, IndianOil should not be held liable to pay the fines as well as the same should be waived-off," the International Olympic Committee said.

The firm said that it "had received similar notices from the BSE as well as the N in the past imposing fines although waiver requests from the company was considered favorably by the exchanges," adding that it "regularly takes up appointments of independent representatives on the company board with parent ministry." While GAIL said that appointments fall beyond the jurisdiction or control of the company's management, HPCL and BPCL made similar claims. According to OIL, the government has been asked to nominate independent directors.

According to MRPL, the ministry has been contacted on a regular basis for the nomination of the necessary number of independent directors to the board, and the request is now being actively considered.

Each of the enterprises was fined Rs 5,42,800 for the third quarter of 2023, which ran from October to December. A comparable fine had been imposed on them during the second quarter (July–September 2023).

ONGC was fined Rs 3.36 lakh, IOC was fined Rs 5.36 lakh, and GAIL was fined Rs 2.71 lakh for non-compliance in April–June 2023. While Oil India was hit with a punishment of Rs 5.37 lakh, HPCL and BPCL were each required to pay a fine of Rs 3.6 lakh.