REC Limited’s Board addressed a fine levied by stock exchanges for non-compliance regarding the composition of its Board of Directors for the quarter ended September 30, 2025. The Board is actively pursuing the appointment of required Independent Directors with the Ministry of Power and has requested a waiver for the fines, arguing the matter is beyond the company’s control.
Response to Non-Compliance Fine
REC Limited acknowledged a fine from the stock exchanges related to non-compliance in the composition of its Board of Directors as of September 30, 2025. This issue was discussed at a Board of Directors meeting on December 31, 2025. The fines were imposed due to a lack of the required number of Independent Directors.
Actions and Justifications
The Board is actively engaged with the Ministry of Power (Government of India), the appointing authority, to accelerate the appointment of the necessary Independent Directors. REC Limited has requested the stock exchanges to waive the imposed fines and avoid further penalties. The company asserts that the appointment of Independent Directors is outside its direct control. According to the company, as a government entity, the President of India, via the Ministry of Power, holds the power to appoint Independent Directors. Therefore, REC Limited maintains it has no direct role in the appointment process.
Financial Implications
The original notice from the exchanges indicates a total fine payable of ₹542,800, inclusive of GST. This amount could increase if the non-compliance continues. REC is actively seeking a waiver to mitigate these costs. The fine breaks down to ₹460,000 plus GST of ₹82,800.
Source: BSE
