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MSTC Limited has provided comments to the BSE and NSE regarding a fine levied for non-compliance with Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, concerning board composition. The company's Board, in its meeting on December 30, 2025, acknowledged the non-compliance and the imposed fine. The Board noted that three independent directors were appointed by the administrative Ministry during the June 2025 quarter, and the company is now compliant with requirements for a woman independent director and committee composition, though a vacancy for one independent director remains.

The Board highlighted that as a Government Company, the appointment of Independent Directors is vested with the President of India acting through the administrative Ministry, as per the Company's Articles of Association and government guidelines. Neither the Board nor the Company has the power to appoint these directors.

Consequently, the Board recommended regular follow-up with the Ministry of Steel to expedite the appointment of the required number of Independent Directors. Furthermore, the company has requested the stock exchanges to waive the fine, stating that the matter of director appointments is beyond the Company's control and no violation on their part has occurred.