REC Limited Faces Fines Over Board Composition Non-Compliance as Company Seeks Waiver
REC Limited, a Government of India Enterprise, has faced financial penalties imposed by major Stock Exchanges regarding the composition of its Board of Directors for the quarter ended March 31, 2026. The fines relate to non-compliance with provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.The Boards of REC Limited reviewed the matter following notices received from the National Stock Exchange of India (NSE) and BSE. These reviews concerned the Company's failure to comply with requirements pertaining to Board composition as stipulated under the Listing Regulations.
Financial Details of Fines Levied
The fines imposed by both exchanges primarily stemmed from non-compliance related to Regulation 17(1). The penalties are detailed below:
| Regulation | Quarter Ended | Fine Per Day (Rs.) | Number of Days | Base Fine Amount (Rs.) | GST@18% (Rs.) | Total Fine Payable (Inclusive of GST) |
|---|---|---|---|---|---|---|
| Regulation 17(1) | March 31, 2026 | 5,000 | 90 | 450,000 | 81,000 | 531,000 |
The exchanges issued notifications outlining the penalties under SEBI Master Circular No. HO/49/14(7)/2025-CFD-POD2/1/3762/2026. Additionally, REC Limited noted that other regulations reviewed by the exchanges regarding board meetings, committee constitution, and risk management did not incur fines for this period.
Company Stance on Appointments
The Board of Directors meeting held on June 28, 2026, acknowledged the findings of non-compliance and the associated financial penalties. REC Limited subsequently submitted comments to the authorities regarding these fines.
The Company asserted that as a Government Company, the power to appoint Independent Directors rests with the President of India acting through the administrative Ministry, namely the Ministry of Power, Government of India. Consequently, REC Limited stated it had no role in the appointment process and requested that the regulatory authorities waive off the imposed fines. The Board initiated follow-up with the appointing authority, the Ministry of Power, to expedite the appointment of the requisite number of Independent Directors on the board.
RECLTD Stock Price Movement
REC Limited shares edged higher on Tuesday, closing at ₹352.45 after gaining 0.54% from its previous session's close. The stock traded within a narrow band during the day, hitting a high of ₹353.60 and dipping to a low of ₹346.80, while recording volume of 3.71 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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