Rail Vikas Nigam Limited (RVNL) has been fined Rs 9,55,800 by the National Stock Exchange for non-compliance with board and committee composition norms during the quarter ended March 31, 2026. RVNL disclosed the penalty through a filing under Regulation 30 of the SEBI (LODR) Regulations, 2015.
The NSE levied the penalty for violations of Regulations 17(1), 18(1), and 19(1)(2) of the SEBI (LODR) Regulations, 2015. Regulation 17(1) pertains to the composition of the board of directors. Regulations 18(1) and 19(1)(2) govern the composition of the audit committee and the nomination and remuneration committee, respectively. The fine was communicated through NSE letter number NSE/LIST-SOP/COMB/FINES/0611, dated May 27, 2026.
RVNL clarified to NSE that the President of India, through the Ministry of Railways, appoints all directors including independent directors and woman independent directors. RVNL stated it has no role in the appointment of any director.
Compliance with the regulations will be achieved once the Ministry of Railways appoints the requisite number of directors. RVNL will then be eligible for a waiver of fines under SEBI's policy for exemption of fines. NSE and BSE had waived fines on RVNL for similar non-compliance in prior instances.
RVNL reported no impact on its financial, operational, or other activities from this fine. The non-compliance pertained to the composition of the board and its committees for the quarter ended March 31, 2026. The disclosure was made under point 20 of Schedule III of the SEBI (LODR) Regulations, 2015.
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.