REC Limited has informed the Exchange regarding 'Board comments on fine levied by the Exchanges.'.

Sebi PenaltyRegulatory & Legal View source PDF Explain this filing

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Price reactionminutes from the announcement price · days from the prior close

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₹395.30

prior close

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announcement price

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Nifty 100market · index membership as recorded later (tracked since Jun 2026)-0.2%-0.9% vs market

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On the reaction day the stock moved 0.9 pts less than Nifty 100 and 0.9 pts less than its Financial Institution peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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AI summary

REC Limited was fined Rs. 5,54,600 (including 18% GST) by BSE and NSE for non-compliance with SEBI's Listing Regulations during the quarter ended March 2025. The main issue was insufficient composition of the Board of Directors — specifically the failure to appoint a woman director and adequate independent directors (Regulation 17(1)), which attracted Rs. 5,31,000 of the total fine. Additional smaller fines were levied for non-compliance with the composition of the Audit Committee (Rs. 11,800) and Nomination & Remuneration Committee (Rs. 11,800). The Board noted that as a Government of India enterprise, the appointment of Independent Directors lies with the Ministry of Power and is beyond the company's control. The Board has requested the Ministry to expedite appointments and has asked the stock exchanges to waive the fines. Importantly, REC has been compliant with committee composition requirements since April 17, 2025. A continued non-compliance next quarter could risk the stock being shifted to the 'Z' group and facing trading suspension.

Likely market impact

The fine amount is financially negligible for a Maharatna PSU like REC, but the key risk is regulatory: if non-compliance with board composition continues for a second consecutive quarter, the stock could be moved to the Z group and face trading suspension. The company has limited ability to fix this since director appointments rest with the government. Shareholders should watch for updates on Independent Director appointments by the Ministry of Power.