Hindustan Zinc Ltd (HZL), a Vedanta Group subsidiary, has been fined ₹5.42 lakh each by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for non-compliance with board composition norms under Regulation 17(1) of SEBI Listing Regulations.

The penalty, imposed on March 17, 2025, was disclosed in a regulatory filing by HZL, which confirmed that the issue stems from a shortfall in the required number of Independent Directors on its board.

Awaiting government approval

HZL has attributed the delay in appointing Independent Directors to pending approval from the Ministry of Mines (MoM), Government of India.

“The Company has been diligently following up with MoM, Government of India to ensure compliance with the relevant requirements,” HZL stated in its filing.

The company has not provided a timeline for resolution but emphasised that it is actively engaging with the government to address the matter.

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While the fine amount is not considered significant in financial terms, the regulatory lapse raises concerns about governance standards within the Vedanta Group.

Shares of Hindustan Zinc Ltd closed at ₹436.60 on the BSE, up 0.30%, ahead of the announcement.