Indian Railway Finance Corporation (IRFC) has been fined ₹9,77,040 each by the BSE and NSE due to non-compliance regarding the composition of the Board and its committees, specifically the Audit and Nomination & Remuneration Committees, for Q2 (July-September) 2025. IRFC is engaging with the Ministry of Railways to resolve the issue and has requested a waiver of the fines, citing previous waivers for similar instances.
Financial Penalties Imposed
The BSE and NSE have each levied a fine of ₹9,77,040 (inclusive of GST) on Indian Railway Finance Corporation (IRFC) due to certain non-compliances.
Details of Non-Compliance
The penalties relate to non-compliance with regulations regarding the composition of the Board and the constitution of key committees. Specifically, these involve regulations pertaining to the Audit and Nomination & Remuneration Committees for Q2 (July-September) 2025.
Company Response
IRFC, being a government company, relies on the Ministry of Railways for the appointment of directors. The company has communicated with the Ministry to address the requirements. Additionally, IRFC has requested that the BSE and NSE waive the imposed fines. The company cites similar instances of non-compliance between March 2021 and December 2021, where the exchanges waived the fines.
Impact Assessment
IRFC states that the fines are not expected to have a significant impact on its financial or operational activities.
Source: BSE
