RailTel Faces Penalty from NSE and BSE for Non-Compliance with Board Composition Norms:

RailTel Faces Penalty from NSE and BSE for Non-Compliance with Board Composition Norms RailTel Corporation of India Ltd, under the Ministry of Railways, which serves as a neutral telecom infrastructure provider and an Information and Communications Technology (ICT) service provider, recently issued a disclosure regarding the imposition of a fine by NSE and BSE.

Background of the Case

BSE Limited has imposed a fine of Rs. 542,800 (including GST) on the Company. The fine was communicated through a BSE email dated February 27, 2026 and was received by the Company on March 2, 2026. Apart from BSE, NSE Limited has also imposed a fine of Rs 542,800 (including GST). NSE issued a letter No. NSE/LISTSOP/COMB/FINES/0215 dated February 27, 2026, which was received by the Company on March 2, 2026.

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Penalty Imposed

NSE and BSE both imposed penalties due to non-compliance with Regulation 17(1) of the SEBI (LODR) Regulations regarding the required composition of the Board of Directors for the quarter ended December 31, 2025.

Company's Response

The company stated that the above non-compliance related to the composition of the Board is beyond the control of the Company. RailTel Corporation of India Ltd is a Government Company under Section 2(45) of the Companies Act, 2013. As per the Articles of Association of the Company, the President of India has the authority to appoint Directors (including Independent Directors) on the Board of RailTel. All Directors of RailTel are appointed by the Government of India through its Administrative Ministry, the Ministry of Railways (MoR). Therefore, RailTel does not have any role in appointing Directors to its Board. The Company has already made requests from time to time to the Ministry of Railways for the appointment of the required number of Directors, including Independent Directors, on the Board.

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Financial Impact

The company stated that it has no impact on its financial operation or other activities.

Company’s Disclosure Compliance

The company made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.