REC Limited has been levied a fine of ₹10,77,340 by both the National Stock Exchange (NSE) and BSE Limited (BSE). These penalties stem from non-compliance with Listing Regulations concerning the composition of its Board of Directors and Committees for the quarter ending June 30, 2026. The company has clarified that the appointment of Directors rests with the President of India, via the Ministry of Power, and REC has no role in this process.
Stock Exchanges Impose Fines on REC
REC Limited has disclosed receiving notices from both the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE), dated August 25, 2026. These notices relate to instances of non-compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically concerning the quarter that concluded on June 30, 2026.
Governance and Board Composition Issues
The non-compliance identified by the exchanges pertains to the composition of the Board of Directors and its Committees. As a consequence, both NSE and BSE have each imposed a fine of ₹10,77,340 on REC Limited for these lapses.
Company’s Stance on Director Appointments
In its communication, REC Limited clarified its position regarding the appointment of directors. As a Government Company, the authority to appoint Directors to its Board is vested with the President of India, acting through its administrative Ministry, the Ministry of Power. REC has stated that it has no direct role in the appointment process. However, the company has been consistently requesting its administrative Ministry to ensure the appointment of the requisite number of Independent Directors to its Board on a timely basis.
Source: BSE
