IRFC Comments on Exchange Fine for Board Composition Lapses
Indian Railway Finance Corporation Ltd (IRFC) has responded to fines levied by NSE and BSE for non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, concerning board composition, meeting quorum, and committee constitution for the quarter ended June 30, 2026. The company stated that the appointment of directors is beyond its control, resting with the Ministry of Railways. IRFC has requested a waiver of the fine, citing previous instances where similar fines were waived. The Board has urged the Ministry of Railways to expedite the appointment of independent directors. The total fine imposed amounts to ₹8,19,000 (₹4,55,000 basic + ₹81,900 GST for Regulation 17(1), ₹40,000 basic + ₹7,200 GST for Regulation 17(2A), ₹1,82,000 basic + ₹32,760 GST for Regulation 18(1), and ₹1,82,000 basic + ₹32,760 GST for Regulation 19(1)/19(2)).
Key Highlights
- IRFC fined by exchanges for board composition and committee non-compliance.
- Company cites Ministry of Railways' control over director appointments.
- Requests fine waiver, referencing past precedents.
- Board urges expedited appointment of independent directors.
- Total fine levied is ₹8,19,000 including GST.
Price Impact
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