RITES Limited Comments on Fines Imposed by Stock Exchanges over Board Composition Non-compliance
RITES Limited, a Schedule 'A' Enterprise of the Government of India, has provided comments regarding fines levied by the National Stock Exchange (NSE) and BSE concerning corporate governance matters. The fines were imposed for non-compliance related to Board composition, specifically mentioning the failure to appoint a woman director, for the quarter ending March 31, 2026.The Company’s Board of Directors addressed the matter in its meeting held on June 25, 2026. The Board reviewed the concerns raised by BSE and NSE regarding regulatory requirements.
According to RITES Limited, the observed non-compliance was beyond the control of the Company. The Board noted that proactive steps were taken by the company, including informing and requesting the Administrative Ministry, the Ministry of Railways, well in advance regarding potential non-compliance issues related to the requisite number of independent directors.
RITES Limited clarified its structural constraints concerning director appointments. As a Government Company, the power to appoint Independent Directors on the Board rests with the President of India acting through the administrative Ministry, the Ministry of Railways. Consequently, the company holds no role in the appointment process for these positions.
The Board further expressed concern over the notice received from BSE and NSE, advising that the Administrative Ministry be requested regularly to expedite the process of appointing the requisite number of independent directors, including a woman independent director, to avoid future non-compliance with Listing Regulations and applicable laws.
RITES Stock Price Movement
Shares of RITES Limited today slipped by 0.24%, closing at ₹222.76 after a session marked by cautious trading. The stock accounted for a total traded volume of 2.34 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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