REC Limited Board Comments on Fines Related to Board Composition
REC Limited, a Maharatna Company, reported that its Board of Directors addressed a matter of non-compliance regarding the composition of the Board during a meeting held on March 16, 2026. This follows a communication dated February 27, 2026, from the National Stock Exchange of India Limited (NSE) and BSE Limited regarding non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.The Board noted the non-compliance and the associated fines imposed by the stock exchanges. The Board requested that regular follow-up be made with the Ministry of Power, Government of India, to expedite the appointment of independent directors. They also requested the exchanges to waive the fines and avoid further penalties, citing the Company’s limited control over the appointment process.
REC Limited clarified that, as a Government Company, the power to appoint independent directors resides with the President of India acting through the Ministry of Power.
The total fine payable, inclusive of GST, amounts to ₹542,800.
Details of Fines
The following table summarizes the fines imposed:
| Regulation | Quarter | Fine amount per day (₹) / Fine amount per instance (₹) | No. of days of non-compliance / No. of instance(s) | Fine amount (₹) |
|---|---|---|---|---|
| REGULATION 17(1) | 31-Dec-2025 | 5000 | 92 | 460000 |
| Total Fine | 460000 | |||
| GST@18% | 82800 | |||
| Total Fine Payable (Inclusive of GST) | 542800 |
REC Limited is advised to remit the fine amount to the designated virtual bank account of the exchange.
The company is further advised to place this matter before the Board in the next meeting and inform the Exchange of the comments made.
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