Rail Vikas Nigam Fined ₹23.72 Lakh by NSE & BSE for Q1 FY26 Board Non-Compliance

State-run infrastructure giant Rail Vikas Nigam Limited (RVNL) has been fined a combined ₹23.72 lakh by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) over non-compliance with board composition norms during the first quarter of FY26 (April–June 2025).

Details of the Penalty

Both NSE and BSE imposed penalties of ₹11,85,900 each (inclusive of GST).

The non-compliance relates to SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, specifically Regulations 17(1), 17(2A), 18(1), 19(1)/(2), 20(2)/(2A), and 21(2).

These regulations cover key governance requirements such as the composition of the Board of Directors, Audit Committee, Nomination & Remuneration Committee, Stakeholders’ Relationship Committee, and Risk Management Committee.

RVNL’s Clarification

In its exchange filing, RVNL clarified that as a government company, it does not have direct control over board appointments. These appointments are made by the President of India through the Ministry of Railways, in line with the Companies Act, 2013.

The company added that the penalty does not have any material financial impact on its operations or investor interests.

Why This Matters

Corporate governance is a critical compliance area for all listed entities. While RVNL is a PSU and dependent on ministry-driven appointments, SEBI’s regulations mandate strict adherence to board composition norms to protect investors and ensure transparency.

What’s Next?

RVNL is expected to work closely with the Ministry of Railways to fill vacant board positions and bring its committees into full compliance. Investors will be watching how quickly the PSU resolves these governance gaps to avoid further penalties in upcoming quarters.