Corporate Governance9 Jul 2026, 02:14 pm
RITES Fined ₹1.88 Lakh by Exchanges for Board Composition Lapses
AI Summary
RITES Ltd has been fined ₹94,400 by both NSE and BSE for non-compliance with SEBI's Listing Regulations regarding board composition, specifically the failure to appoint a woman director for the quarter ended March 31, 2026. The company's Board noted that the non-compliance was beyond its control, as the appointment of independent directors, including a woman director, is vested with the President of India acting through the Ministry of Railways. RITES has proactively informed the Ministry and will regularly request them to expedite the appointment process to prevent future non-compliance.
Key Highlights
- RITES fined ₹94,400 each by NSE and BSE for board composition non-compliance.
- Failure to appoint a woman director cited as the primary regulatory breach.
- Company states director appointments are outside its control, vested with President of India.
- RITES to regularly request Ministry of Railways to expedite director appointments.
Price Impact
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