Indian Railway Finance Corporation Limited has informed the Exchange about General Updates
IRFC · price
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On 29th May 2025, both BSE and NSE imposed a fine of Rs. 14,51,400 (inclusive of GST) on IRFC for non-compliance with SEBI's corporate governance norms during the quarter ended 31st March 2025. The violations relate to Regulation 17(1), 17(2A), 18(1), 19(1)/19(2), 20(2)/(2A) and 21(2), covering composition of the Board, quorum of Board meetings, and constitution of key committees like Audit, Nomination and Remuneration, Stakeholder Relationship, and Risk Management. IRFC clarified that the non-compliance is because the appointment of Directors vests with the President of India through the Ministry of Railways, and the company has no control over it. The company has already requested the stock exchanges to waive the fines, noting that similar fines for the period March 2021 to December 2021 were previously waived by both exchanges. The company has stated there is no financial, operational, or other impact from these fines.
The fine amount is immaterial relative to IRFC's size and is unlikely to affect the stock price. The non-compliance stems from delays by the government in appointing independent directors, not from any company mismanagement, and there is a past precedent of such fines being waived.