Rail Vikas Nigam Limited (RVNL) has been fined Rs 9,55,800 by BSE Limited for non-compliance with board composition requirements under SEBI regulations for the quarter ended March 31, 2026. The fine amount includes goods and services tax.
The penalty relates to violations of Regulations 17(1), 18(1), and 19(1)(2) of the SEBI (LODR) Regulations, 2015 concerning the composition of the board, audit committee, and nomination and remuneration committee. BSE's communication regarding the fine was received on May 27, 2026, referencing the SEBI Master Circular dated July 11, 2023.
RVNL clarified to BSE on May 11, 2026, that it is a government company. The President of India, through the Ministry of Railways, appoints all directors including independent directors and woman independent directors on RVNL's board. RVNL has no role in the appointment of any director.
The appointment of the requisite number of directors to meet board composition requirements is pending with the Ministry of Railways. RVNL had previously clarified this position to BSE through a letter dated May 11, 2026.
Once the required directors are appointed by the Ministry of Railways and RVNL attains compliance with the relevant SEBI regulations, RVNL will be eligible for a waiver of fines under SEBI's policy for exemption of fines. In earlier instances of non-compliance, both NSE and BSE had waived fines imposed on RVNL for similar composition-related requirements.
RVNL stated that the fine has no impact on its financial, operational, or other activities.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.