Indian Railway Catering and Tourism Corporation Ltd addressed penalties imposed by stock exchanges regarding non-compliance with board composition norms for the quarter ended 31 March 2026. The BSE and NSE levied a fine of ₹5,31,000 each on the company for failing to adhere to Regulation 17(1) of the SEBI (LODR) Regulations, 2015, which mandates specific board composition including the appointment of a woman director.

The board, in its meeting held on 14 July 2026, deliberated on the matter and stated that the observed non-compliance was beyond the company's control. The board noted that the company had taken proactive steps by informing the administrative ministry, the Ministry of Railways, well in advance about the potential non-compliance.

To prevent future lapses, the board advised that the administrative ministry be requested regularly to expedite the process of appointing the requisite number of independent directors, including a woman independent director. This measure aims to ensure compliance with the SEBI (LODR) Regulations, 2015, the Companies Act, 2013, and other applicable laws.

The fines were communicated to the company via letters from the NSE and an email from the BSE dated 27 May 2026. IRCTC had previously intimated the exchanges regarding this matter through a correspondence dated 28 May 2026.

Indian Railway Catering and Tourism Corporation Ltd announced that its Chairman and Managing Director, Shri Sanjay Kumar Jain, has resigned from his position effective July 20, 2026. The resignation was approved by the Ministry of Railways, Government of India, following a letter dated June 22, 2026. The company stated that orders for the additional charge of the CMD post will be issued in due course.

The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the competent authority had accepted the resignation, which was submitted by Jain on personal grounds. The transition is expected to be managed smoothly, with Jain expressing commitment to an orderly handover in his resignation letter.

Shri Sanjay Kumar Jain served as the CMD during a period when the company progressed from "Mini Ratna to Nav Ratna" and from "Schedule B to Schedule A". In his resignation letter dated April 20, 2026, he expressed gratitude for the opportunity to serve the organization and highlighted the collective efforts of employees and stakeholders in building the company.

Board Composition Change

The following table details the key information regarding the change in board composition:

The resignation was submitted in accordance with Para 1.1 of the appointment letter No. 2019/E(O)II/40/18 dated August 29, 2024. Jain requested to be relieved upon the completion of the notice period. The company has assured that all necessary regulatory disclosures have been made.