RailTel Receives Rs 5.31 Lakh Fine Each from NSE and BSE for Regulatory Non-Compliance

The company named “RailTel Corporation of India Ltd” has recently made a disclosure regarding the penalty that NSE and BSE have issued against the company. The penalty was of Rs 5.31 lakh each, which also included GST.

This fine was issued as RailTel’s Board of Directors failed to comply with the requirements for the quarter ended on March 31, 2026 according to Regulation 17(1) of the SEBI Listing Regulations.

The company also reported that it got an email from BSE regarding the same on 27 May 2026 as per SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

The company also got an letter from NSE dated 27 May 2026 which was recieved by the company on May 29 2026 informing the company about the fine imposed for non-compliance with the prescribed board composition requirements under SEBI regulations.

The company further claimed that the non-compliance happened because it is a government-owned company under Section 2(45) of the Companies Act, 2013 and does not have the authority to nominate directors.

According to its Articles of Association, the Government appoints directors, including independent directors, through the Ministry of Railways. The company added that it has repeatedly requested the Ministry of Railways to appoint the necessary number of directors, including independent directors, to ensure compliance with SEBI rules.