Ircon International Limited has informed stock exchanges that the NSE and BSE levied fines of Rs 9,55,800 each, inclusive of GST, for non-compliance with board composition norms during the quarter ended 31 March 2026. The total fine across both exchanges stands at Rs 19,11,600.
The fines, communicated in letters dated 27 May 2026, were imposed for non-compliance with Regulations 17(1), 18(1), and 19(1)/19(2) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. These regulations govern the composition of the board of directors, the audit committee, and the nomination and remuneration committee respectively.
IRCON is a government company. All its directors, including independent directors and the woman director, are appointed by the President of India through the Ministry of Railways. IRCON stated it has no role in director appointments unless the government makes a nomination. IRCON has been continuously requesting the Ministry of Railways to appoint the required number of independent directors, including a woman independent director, to achieve full compliance.
The fine does not affect IRCON's financial, operational, or other activities. IRCON has classified the amount as a contingent liability in its financial statements.
Once the Ministry of Railways appoints the requisite directors and IRCON achieves compliance, IRCON will be eligible for a waiver of fines under SEBI's exemption policy. Similar fines imposed in earlier instances were waived after IRCON attained the required compliances.
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.