RVNL Faces Penalty Order for Board Composition Non-Compliance

The Rail Vikas Nigam Limited recently disclosed to the National Stock Exchange of India Ltd and BSE Ltd regarding Regulation 30 of SEBI (LODR) Regulations, 2015-Imposition of fine by BSE for the quarter ended September 30, 2025.

The Rail Vikas Nigam Limited added that it has received a penalty order of Rs 977,040 (inclusive of GST) from BSE Limited on November 28, 2025 through email for breach of Regulation 17(1), 18(1) and 19(1)(2)- Non-compliance for the composition of the Board and its committees for the quarter ended September 30, 2025.

Company further added that there is no impact on financial, operational or other activities of the listed entity.

The company informed the stock exchange (BSE) through a letter dated November 12, 2025 that RVNL is a Government company, as defined under the Companies Act, 2013. Because it is a Government company, the Government of India, specifically the Ministry of Railways, has the sole authority to appoint all Directors, including Independent and Women Independent Directors. RVNL itself cannot choose or appoint its Directors.

The company further explained that:

• Once the Ministry of Railways appoints the required number of Directors so that RVNL meets SEBI’s listing rules,
• RVNL will automatically become eligible for a waiver of any fines related to non-compliance, as per SEBI’s rules.
• In the past, whenever there were similar cases of non-compliance, both NSE and BSE had waived the fines after the appointments were made.