Indian Railway Catering and Tourism Corporation Limited (IRCTC) has been fined ₹10,23,060/- each by both the BSE Limited and the National Stock Exchange of India Limited. This penalty is for non-compliance with certain SEBI (LODR) Regulations concerning the composition of its Board of Directors and committees for the quarter ended June 30, 2026. IRCTC stated that the appointment of directors rests with the President of India and is actively pursuing compliances with the Ministry of Railways.
Stock Exchange Fines for Governance Lapses
Indian Railway Catering and Tourism Corporation Limited (IRCTC) has received notices from the BSE Limited and the National Stock Exchange of India Limited (NSE) regarding the imposition of fines. The total fine amounts to ₹10,23,060/- from each exchange, bringing the total to ₹20,46,120/-. These penalties stem from non-compliance with specific provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, pertaining to the quarter that ended on June 30, 2026.
Details of Non-Compliance
The non-compliance specifically relates to the composition of IRCTC’s Board of Directors and its various committees. The affected regulations include 17(1), 18(1), 19(1)/(2), 20(2)/(2A), and 21(2) of the SEBI (LODR) Regulations, 2015. IRCTC highlighted that as a Government Company, the power to appoint Directors, including Independent Directors, rests with the President of India, represented through the Ministry of Railways.
Company’s Response and Impact
IRCTC has indicated that it is actively following up with the Ministry of Railways to ensure the appointment of the requisite number of Independent Directors, including a Women Independent Director. The company has emphasized that the imposed fines have no impact on its financial, operational, or other activities. Furthermore, it was noted that similar past instances have seen waiver requests considered favorably by the exchanges upon subsequent compliances made by the company.
Source: BSE
