RailTel Corporation of India Ltd. has been levied a fine of ₹9,00,340/- each by the National Stock Exchange of India (NSE) and BSE Limited (BSE) for the quarter ended June 30, 2026. The non-compliance pertains to specific regulations regarding the composition of the Board. RailTel has stated that these issues are beyond its control, as director appointments are solely the prerogative of the Government of India through the Ministry of Railways.
RailTel Fined by Stock Exchanges
RailTel Corporation of India Ltd. has disclosed that both the National Stock Exchange of India (NSE) and BSE Limited (BSE) have imposed a penalty on the company. Each exchange has levied a fine of ₹9,00,340/- (inclusive of GST), totaling ₹18,00,680/- for the quarter that concluded on June 30, 2026. This financial penalty stems from non-compliance with specific clauses of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, namely Regulation 17(1), 18(1), and 19(1)/(2).
Board Composition Challenges
In its disclosure, RailTel emphasized that the root cause of this non-compliance lies in matters concerning the composition of its Board of Directors, which are reportedly beyond the company’s direct control. As a Government of India undertaking, all directorial appointments, including those of Independent Directors, are made by the President of India, acting through the Ministry of Railways. RailTel has indicated that it has repeatedly requested the Ministry of Railways to ensure the appointment of the requisite number of directors to the Board.
No Financial Impact Stated
Despite the imposition of these fines, the company has stated that the impact on its financial operations or other activities is nil. The disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Source: BSE
