Imposition of Fine by NSE/BSE
RAILTEL · price
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NSE and BSE have each levied a fine of Rs. 5,31,000/- (inclusive of GST) on RailTel for the quarter ended March 31, 2026. The penalty is for non-compliance with Regulation 17(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, relating to the composition of the Board of Directors. RailTel has clarified that it is a Government Company under Section 2(45) of the Companies Act, 2013, and that all directors, including Independent Directors, are appointed by the Government of India through the Ministry of Railways. The company states that the non-compliance was beyond its control, as requests for the appointment of the required number of directors have been made from time to time to the Ministry. The company claims the fine has no financial or operational impact.
The fine of approximately Rs. 10.6 lakh combined (before considering GST) is minor financially, but it signals an ongoing governance gap at RailTel. Since the government controls board appointments, the company is essentially helpless to resolve the board composition issue until the Ministry of Railways acts.