The penalty is related to the non-compliance with Regulation 17(1) of the SEBI LODR, which outlines the rules related to the composition of the board.
Nidhi | Mar 5, 2026 |
Stock Exchanges Impose Penalty on RailTel Due to Violation of Board Composition Rules
RailTel Corporation of India Limited has disclosed the imposition of a penalty from both stock exchanges due to non-compliance with board composition rules. The penalty has been levied for the quarter ending December 31, 2025.
The National Stock Exchange and BSE levied an equal penalty of Rs 5.42 lakh each (inclusive of GST).
Background of Case
The penalty is related to the non-compliance with Regulation 17(1) of the SEBI LODR, which outlines the rules related to the composition of the board. Regulation 17(1) mandates the specific composition requirements for the board of directors of a listed entity. The listed companies are required to maintain a proper composition of the board. However, the NSE and the BSE have alleged that RailTel has failed to comply with this requirement.
The company has stated that the non-compliance occurred because it is a government company. The President of India has the authority to appoint directors (including the independent director) on the Board of RailTel. The company stated that it has no role in the directors’ appointment.
“Requests have already been made from time to time to the MoR for the appointment of requisite number of Directors including Independent Directors on the Board of the Company“, RailTel said.
Key Details of the Order
| Particular | Details |
| Authorities imposing fine | NSE and BSE |
| Violated Section | Regulation 17(1) of SEBI LODR |
| Related Period | Quarter ended December 31, 2025 |
| Fine by NSE | Rs 5,42,800 (including GST) |
| Fine by BSE | Rs 5,42,800 (including GST) |
Financial Impact
RailTel clarified that both the penalty orders do not have any significant impact on the financial, operation or any other activities.
Company’s Disclosure Compliance
RailTel made the disclosure to both NSE and BSE under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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