REC Limited’s Board addressed fines levied by stock exchanges for non-compliance regarding the composition of the Board of Directors and certain committees for the quarter ending June 30, 2025. The Board is actively engaging with the Ministry of Power to expedite the appointment of independent directors and has requested a waiver of the fines, citing that the matter is beyond the company’s direct control.
Board Review of Non-Compliance Issues
The Board of Directors of REC Limited convened on September 28, 2025, to discuss the non-compliance issues raised by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). These issues relate to the composition of the Board, specifically the Audit Committee and the Nomination & Remuneration Committee, for Q1 (Apr-Jun) 2025. Resulting fines imposed by the exchanges were also reviewed.
Engagement with Ministry of Power
The Board has emphasized the need for continuous engagement with the Ministry of Power, Government of India, which is the appointing authority for independent directors. This is to accelerate the appointment process to meet compliance requirements. REC Limited also requested the stock exchanges to waive the imposed fines, arguing that the appointment of independent directors is outside of the company’s control.
Company’s Stance on Compliance
REC Limited maintains that because it is a Government Company, the power to appoint Independent Directors lies with the President of India through the administrative Ministry of Power. The company asserts it has no direct role in these appointments. Furthermore, the company highlighted that since April 17, 2025, it has been compliant with the composition requirements for the Audit Committee and Nomination & Remuneration Committee. The stock exchanges have waived the earlier fines.
Source: BSE
