Rail Vikas Nigam Limited (RVNL) disclosed that the National Stock Exchange (NSE) and BSE Limited (BSE) have imposed fines of ₹9,77,040/- (plus GST) each for non-compliance related to board composition for the quarter ended December 31, 2025. RVNL stated the imposition relates to Regulation 17(1), 18(1) & 19(1)/(2) of LODR. The company emphasized that as a Government entity, director appointments are managed solely by the Government of India, Ministry of Railways (MoR), and the fines have no financial or operational impact.
Disclosure of Exchange Fines for Q3 FY2025
Rail Vikas Nigam Limited (RVNL) has reported receiving directions from the stock exchanges regarding penalties for the quarter ending December 31, 2025. The regulatory infraction specifically relates to non-compliance concerning the required composition of the Board and its various committees, as mandated under Regulation 17(1), 18(1) & 19(1)/(2) of the Listing Obligations and Disclosure Requirements (LODR).
Details of Penalties Imposed
Both exchanges, the National Stock Exchange (NSE) and BSE Limited (BSE), levied identical monetary penalties on RVNL. The fine imposed by each entity was ₹9,77,040/- (inclusive of GST). The official communication regarding the fine from NSE was received on February 27, 2026, following an earlier circular from SEBI dated November 11, 2024.
Company’s Stance on Non-Compliance
RVNL reaffirmed its status as a Government company under Section 2(45) of the Companies Act, 2013. The company clarified that the power to appoint all Directors, including Independent and Woman Independent Directors, vests exclusively with the President of India, exercised through the Ministry of Railways (MoR). Consequently, RVNL asserts it has no direct role in the appointment process.
Financial and Operational Impact
The disclosure explicitly states that the imposition of these fines has no impact on the financial, operational, or other activities of the listed entity. Furthermore, the impact is considered not quantifiable in monetary terms beyond the fine amount itself.
Waiver Eligibility and Precedent
RVNL noted that upon achieving compliance through the appointment of the requisite number of Directors by the MoR, the Company will be eligible for a waiver of these fines, referencing existing SEBI policy for exemption. It was also mentioned that the exchanges have waived fines in earlier instances of non-compliance for the company.
Source: BSE
