REC Limited has formally addressed the non-compliance fines imposed by stock exchanges NSE and BSE for failing to meet Board composition requirements during the quarter ended December 31, 2025. The Maharatna company's Board of Directors discussed the matter in their meeting held on March 16, 2026, following notices received from both exchanges on February 27, 2026.

Fine Details and Regulatory Breach

Both exchanges imposed identical penalties under Regulation 17(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically targeting non-compliance with Board composition requirements including failure to appoint adequate Independent Directors.

Board's Response and Waiver Request

The Board acknowledged the non-compliance position and fines imposed by both stock exchanges. Key decisions taken during the March 16, 2026 meeting included:

• Regular follow-up with Ministry of Power, Government of India to expedite Independent Director appointments
• Formal request to exchanges for fine waiver
• Appeal against imposition of future penalties

The Board emphasized that appointment responsibility lies beyond company control, with no violation attributable to REC Limited's actions.

Government Company Constraints

REC Limited highlighted its unique position as a Government company where director appointments follow constitutional procedures. According to the company's Articles of Association, the power to appoint Independent Directors vests with the President of India through the administrative Ministry of Power. The company maintains no direct role in the appointment process, making compliance dependent on government decision-making timelines.

Exchange Requirements and Deadlines

Both exchanges have mandated payment within 15 days of their February 27, 2026 notices. The exchanges also outlined waiver application procedures:

• Applications must be submitted through designated online portals
• Processing fee of ₹10,000 plus 18% GST required for fines exceeding ₹5,000
• Compliance achievement prerequisite for waiver consideration
• Detailed reasoning and personal hearing requests permitted

The company has been advised that continued non-compliance could result in additional penalties and potential trading restrictions.

Source: None/Company/INE020B01018/0df2ff94-4384-4bb1-b5fc-72f0d8a31ab3.pdf

REC Limited has officially declared its fourth interim dividend of ₹3.20 per equity share (32% on face value of ₹10) for the financial year 2025-26, following the board meeting held on March 16, 2026. The company has set March 20, 2026 as the record date for determining eligible shareholders, with dividend payments to be completed by April 14, 2026.

Dividend Declaration Details

The board of directors approved the dividend proposal during their meeting on March 16, 2026, in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting commenced at 2:00 p.m. and concluded at 2:40 p.m., marking the fourth interim dividend distribution for the current financial year.

Regulatory Compliance and Publication

Pursuant to Regulation 30 of SEBI regulations, REC Limited published newspaper clippings in Business Standard (English and Hindi editions) dated March 17, 2026, announcing the record date and dividend details. The company has also opened a special window for transfer and dematerialisation of physical securities in terms of SEBI circular dated January 30, 2026, available from February 5, 2026 till February 4, 2027.

Payment Mode and Shareholder Requirements

Pursuant to recent amendments in the Listing Regulations, dividend payments will be made exclusively through electronic mode. The provision for remittance via physical instruments such as cheques or warrants has been discontinued. Shareholders are advised to update their bank account details to enable seamless credit of dividends.

Tax Deduction Requirements

As per the Income Tax Act, 1961, dividend income is taxable in shareholders' hands, and the company is required to deduct tax at source (TDS) at prescribed rates. Shareholders desiring lower tax deduction or exemption must submit scanned copies of PAN, Form 15G/15H, and other requisite documents for FY 2025-26 by March 20, 2026. Documents can be submitted via email at virenders@alankit.com with copy to recigr@alankit.com , or through the weblink: https://einward.alankit.com/ . No communication regarding tax determination will be entertained after March 20, 2026.

Shareholder Benefits

The declaration of ₹3.20 per share as the fourth interim dividend reflects REC's consistent approach to profit distribution and commitment to providing regular returns to shareholders. This systematic dividend policy demonstrates the company's strong financial performance and robust cash flow management during the ongoing financial year.