India Tourism Development Corporation Ltd. (ITDC) has issued a clarification to BSE regarding unusual trading activity in its shares, stating that the company has no undisclosed material information that could explain the recent surge in trading volumes.

BSE Surveillance Inquiry

The clarification came in response to an email from BSE's surveillance department dated February 02, 2026, which sought an explanation for the significant increase in trading volume of ITDC securities across exchanges. The stock exchange's surveillance mechanism routinely monitors unusual price and volume movements to ensure market integrity and compliance with disclosure norms.

Company's Response

In its formal response to BSE, ITDC categorically stated that it has not made any announcements that could have triggered the increased trading activity. The company emphasized that it possesses no information that has become due for disclosure to investors or stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance

The clarification was issued with the approval of the competent authority and digitally signed by V K Jain, Company Secretary of ITDC. This response demonstrates the company's commitment to maintaining transparency and adhering to regulatory requirements under SEBI's listing obligations.

Market Surveillance Framework

Such inquiries from stock exchanges are part of the standard surveillance framework designed to identify potential insider trading, market manipulation, or undisclosed price-sensitive information. Companies are required to respond promptly to such queries to maintain market confidence and regulatory compliance.

The filing confirms that ITDC, a Government of India undertaking in the tourism and hospitality sector, maintains its disclosure obligations and has no pending material information that requires immediate investor notification.

India Tourism Development Corporation Ltd (ITDC), a key player in India's hospitality sector, is addressing regulatory compliance issues with stock exchanges regarding board composition requirements under SEBI regulations.

Regulatory Non-Compliance Issue

ITDC has communicated with BSE Limited regarding penalties imposed for non-compliance with SEBI (LODR) Regulations 2015, specifically under regulations 17 to 19. The non-compliance relates to the Integrated Governance Report filing for the quarter ended September 30, 2025.

Board Composition Challenges

The company's board currently lacks the minimum required number of directors and requisite independent directors, including a woman independent director as mandated by SEBI regulations. This deficiency has resulted in penalties from the stock exchange.

Company's Response and Defense

During the board meeting held on December 16, 2025, ITDC's board was apprised of the compliance issues. The company has taken the position that the non-compliance is not due to any fault on ITDC's part, as directors are appointed by the Government of India through the Administrative Ministry.

Ongoing Efforts and Future Steps

ITDC is actively following up with the concerned appointing authority to address the board composition issues. The company has indicated that once compliance is achieved, it will submit a formal request to the stock exchange for waiver of the imposed penalties.

Company Secretary V.K. Jain has communicated these developments to BSE Limited, emphasizing the company's commitment to achieving compliance while highlighting the dependency on government appointments for board composition.

Previous Financial Performance Context

This regulatory issue comes as ITDC previously reported mixed financial results, with a 16% decline in net profit despite revenue growth. The company has been dealing with various operational challenges, including ongoing disinvestment processes for hotel properties and governance issues related to board composition.