A view of the Bombay Stock Exchange in Mumbai. File
| Photo Credit: Reuters

Equity benchmark indices tumbled nearly 1.5 per cent on Monday (September 30, 2024) due to heavy selling in frontline stocks Reliance Industries, ICICI Bank and HDFC Bank amid rising geopolitical risks in the Middle East and weakness in Japanese markets.

Besides, profit-taking after a record-breaking rally and foreign fund outflows added to the gloom, analysts said.

The BSE Sensex tumbled 1,272.07 points or 1.49% to settle at 84,299.78. During the day, it plunged 1,314.71 points or 1.53% to 84,257.14.

The NSE Nifty tanked 368.10 points or 1.41%t to 25,810.85.

From the 30 Sensex firms, Reliance Industries and Axis Bank declined over 3 per cent each. ICICI Bank, Nestle, Tech Mahindra, Mahindra & Mahindra, Maruti, Bajaj Finserv, State Bank of India and Tata Motors were the other major laggards.

In contrast, JSW Steel, NTPC, Tata Steel, Titan and Asian Paints were the gainers.

“Global markets turned topsy-turvy under the threat of rising geopolitical risk in the Middle-East and plausible increase in Yen interest rate which can reduce cross country investments in equity. On the contrary, the Chinese market had a resurgence due to a large stimulus package and cheap valuation. India also weakened under the global pressure and premium valuation while metals are expected to outperform in the near-term,” said Vinod Nair, Head of Research, Geojit Financial Services.

In Asian markets, Seoul and Tokyo settled with deep cuts, while Shanghai and Hong Kong ended sharply higher.

Japan’s benchmark Nikkei 225 index tanked nearly 5 per cent on Monday. The Shanghai Composite index surged 8 per cent amid fresh stimulus measures announcement.

European markets were trading lower. The US markets ended on a mixed note on Friday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,209.10 crore on Friday, according to exchange data.

Global oil benchmark Brent crude declined 0.19% to $71.84 a barrel.

The BSE benchmark Sensex declined 264.27 points or 0.31% to settle at 85,571.85 on Friday. During the day, it climbed 142.13 points or 0.16% to reach a new record intra-day peak of 85,978.25.

The Nifty dipped 37.10 points or 0.14% to 26,178.95 after rising 61.3 points or 0.23% to an all-time intra-day peak of 26,277.35 during the session.

Stock exchanges have slapped fines on state-owned oil and gas firms including IOC, ONGC and GAIL for their failure to meet listing requirements
| Photo Credit: Reuters

Stock exchanges have slapped fines on state-owned oil and gas firms including IOC, ONGC and GAIL for their failure to meet listing requirements of having a requisite number of independent directors and women directors.

In separate filings, the companies detailed the fines imposed by the BSE and NSE but were quick to point out that appointment of directors was done by the government and they had no role in it.

Oil and Natural Gas Corporation (ONGC) was slapped a ₹3.36 lakh fine, while Indian Oil Corporation (IOC) was asked to pay ₹5.36 lakh fine.

Gas utility GAIL was slapped ₹2.71 lakh fine, Hindustan Petroleum Corporation Ltd (HPCL) ₹3.59 lakh, Bharat Petroleum Corporation Ltd (BPCL) ₹3.6 lakh, Oil India Ltd ₹5.37 lakh and a fine of ₹5.37 lakh was imposed on Mangalore Refinery and Petrochemicals Ltd (MRPL).

Except for IOC which was slapped with the fine for not having the required one woman director on the board, all the companies were fined for violating the norm of having the required number of independent directors.

IOC said the power to appoint directors (including independent and women directors) vests with the Ministry of Petroleum and Natural Gas, Government of India.

“And hence the non-appointment of women independent directors on the Board during the quarter ended June 30, 2023 was not due to any negligence / fault by the company,” it said. “Accordingly, Indian Oil should not be held liable to pay the fines and the same should be waived-off”.

IOC said it regularly takes up the issue with the ministry, for appointment of requisite number of independent directors (including Woman independent director), to ensure compliance with corporate governance norms.

“We would also like to inform that the company had received similar notices from the BSE and NSE in the past imposing fines and waiver requests from the company was considered favourably by the exchanges,” it said.

HPCL made a similar filing and cited past record of stock exchanges waiving such fines.

ONGC said it has requested the government for nomination of the requisite number of independent directors on the board of the company.

“Since the appointment of directors is beyond control of the company, request letters have been submitted to stock exchanges for waiving off the fine levied,” ONGC said.

BPCL said it had complied with the requirements for the financial year 2022-23 and till April 30, 2023.

But the appointment of a full-time directors with effect from May 1, 2023 led to BPCL having five whole-time Directors, two nominee directors of the government and six independent directors.

As per norm, BPCL should have had seven independent directors – equal to the executive directors (five whole-time directors and two government nominee directors).

BPCL said it has “requested the Government of India from time to time for the nomination of one independent director. As the directors are appointed after receipt of nomination from Government of India. BPCL has no control over the appointment of Directors.”

The firm said it will be approaching BSE Limited and National Stock Exchange of India Limited for waiver of the fines. “Similar letters were received earlier from the stock exchanges for which waiver request was made by BPCL and the same was considered favorably by the stock exchanges,” the filing said.

Oil India Ltd (OIL) said the non-compliance was beyond the control of the company as it is a government enterprise and directors are appointed by the administrative ministry, Ministry of Petroleum and Natural Gas.

MRPL said it is following up with the government from time to time for appointing the required number of directors on its board.

GAIL said, “all the directors on the board of GAIL (including independent directors) are nominated/appointed by the Government of India. As such, appointments are outside the purview/control of the GAIL’s management.”