BF Utilities Limited has paid fines totaling ₹5,42,800 to NSE and BSE for non-compliance with board composition requirements under SEBI Listing Regulations. The company received communications dated February 27, 2026 from both stock exchanges regarding violations of Regulation 17(1) of the SEBI Listing Regulations, specifically the failure to appoint an Independent Woman Director following a resignation that created a vacancy on the board. The company paid ₹2,71,400 to each exchange on March 02, 2026, ahead of the March 14, 2026 deadline, demonstrating its commitment to regulatory compliance despite the initial violation.
As many as 36 Maharatna and Navratna public sector companies fell short of the prescribed minimum number of independent directors in FY25, rendering them non-compliant with governance norms, according to a corporate governance survey by Excellence Enablers. The shortfall isn't new: 17 companies have remained below the required threshold continuously from FY22 through FY25, highlighting a persistent governance lapse across more than a dozen PSUs. The Companies Act requires every listed company to appoint independent directors constituting at least one-third of its total board strength, while the Department of Public Enterprises (DPE) guidelines further stipulate that where the chairperson is an executive director, independent directors must account for at least 50% of the board.
The report reveals a sharp skew in board composition across listed PSUs. In FY22, the highest number of independent directors on a single board was eight, a level seen in three listed companies. That peak of eight was recorded in one listed company each in FY23 and FY24, before dropping to five in FY25. At the other end of the spectrum, the lowest count has deteriorated markedly. Two listed companies had just one independent director in FY22, and eight had two in FY23. By FY25, however, as many as 17 listed companies had no independent directors at all.
Board diversity remains critically uneven across PSUs, with 17 companies having no women directors on their boards, according to the latest survey. This gender gap in board composition indicates ongoing gaps in compliance with governance norms that require balanced representation. The shortage of independent directors, who are expected to play a key role in strengthening board oversight and protecting minority shareholder interests, can weaken supervision at large listed companies, particularly in public sector enterprises where government ownership is significant.
Despite the regulatory compliance issues, BF Utilities reported strong Q3 FY26 financial results with significant growth across key metrics. The company's total revenue increased 12.60% to ₹24,360.03 lakhs compared to ₹21,634.21 lakhs in Q3 FY25, while net profit surged 22.44% to ₹10,275.63 lakhs from ₹8,392.70 lakhs in the previous year. Earnings per share improved to ₹11.05 from ₹9.21, representing a 19.98% increase. The company's nine-month revenue from operations grew 12.00% to ₹23,496.76 lakhs, demonstrating consistent operational performance despite the regulatory challenges.