Rail Vikas Nigam Limited Fined by NSE and BSE for Board Composition Non-Compliance
Rail Vikas Nigam Limited has been fined Rs. 9,77,040 each by NSE and BSE for non-compliance with board composition regulations during Q3 FY26. The violations relate to Regulation 17(1), 18(1) & 19(1)/(2) concerning board and committee composition. The company has clarified that as a Government entity, director appointments are made by the President of India through the Ministry of Railways, with RVNL having no role in the process. The company expects fine waiver upon compliance, citing previous instances where similar penalties were waived.
*this image is generated using AI for illustrative purposes only.
Rail Vikas Nigam Limited has disclosed the imposition of fines by both major stock exchanges for regulatory non-compliance during the quarter ended 31st December, 2025. The company made this disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015, on 02nd March, 2026.
Fine Details and Violations
Both the National Stock Exchange and BSE Limited have imposed identical penalties on the company for board composition violations:
| Exchange: | NSE | BSE |
|---|---|---|
| Fine Amount: | Rs. 9,77,040/- (inclusive of GST) | Rs. 9,77,040/- (inclusive of GST) |
| Notification Date: | 27th February, 2026 | 27th February, 2026 |
| Violation Type: | Regulation 17(1), 18(1) & 19(1)/(2) | Regulation 17(1), 18(1) & 19(1)/(2) |
| Impact Assessment: | Has no impact | Has no impact |
The violations specifically relate to non-compliance with the composition of the Board and its committees for the quarter ended 31st December, 2025.
Company's Response and Clarification
Rail Vikas Nigam Limited has responded to both exchanges explaining its unique position as a Government company. The company clarified through letters dated 9th February, 2026 to NSE and 11th February, 2026 to BSE that it operates under the provisions of Section 2(45) of the Companies Act, 2013.
According to the company's explanation, the President of India holds the authority to appoint all directors, including Independent Directors and Woman Independent Directors, on RVNL's Board. All director appointments are made by the Government of India through the Ministry of Railways, leaving the company with no role in the appointment process.
Expected Resolution
The company has indicated that it expects the fines to be waived once compliance is achieved through the appointment of requisite directors by the Ministry of Railways. This expectation is based on SEBI's policy for exemption of fines and historical precedent.
Rail Vikas Nigam Limited noted that in previous instances of similar non-compliance, both NSE and BSE had waived the fines imposed on the company after compliance was restored.
Financial Impact
Despite the monetary penalties totaling Rs. 19,54,080/- from both exchanges combined, the company has assessed that these fines will have no impact on its financial, operational, or other activities. This assessment reflects the company's expectation of fine waiver upon compliance restoration.
Historical Stock Returns for Rail Vikas Nigam
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -5.34% | -4.05% | -7.55% | -4.24% | -14.46% | +822.80% |
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