IRCTC announced that it has been penalized by both the BSE and NSE for non-compliance related to the composition of its Board of Directors for the quarter ending December 31, 2025. The specific failure involves not appointing a requisite number of Independent Directors, including a Woman Director. The total fine levied by each exchange amounts to ₹5,42,800, inclusive of GST. IRCTC confirmed the matter is pending at the level of the Ministry of Railways.
Regulatory Penalty for Board Composition Gaps
Indian Railway Catering and Tourism Corporation Limited (IRCTC) has disclosed that it received notices from both the BSE Limited and the National Stock Exchange of India Limited concerning regulatory non-compliance for the quarter ended December 31, 2025. The non-compliance specifically pertains to the provisions governing the composition of the Board of Directors, notably the failure to appoint a woman director.
Details of Financial Penalty
As a result of this lapse, the exchanges imposed identical fines on IRCTC. The amount of the fine, which includes GST at 18%, is ₹5,42,800 from each exchange (BSE and NSE). This results in a cumulative penalty of ₹10,85,600 for the specified period.
Company Response and Government Linkage
IRCTC clarified that, as a Government Company, the authority to appoint Directors, including Independent Directors, rests with the President of India, represented through the Ministry of Railways. The Company stated it is actively following up with the Ministry regarding the appointment of the required number of Independent Directors, including a Women Independent Director, and that the matter remains pending at the Government of India level.
Impact and Precedent
The management assessed that the imposition of this fine will have no impact on the Company’s financial performance, operations, or other business activities. Furthermore, it was noted that similar penalties have been levied in the past, and the Company’s subsequent requests for waiver have previously been considered favorably by the Exchanges.
Source: BSE
