NSE Fines RVNL ₹9.66 Lakh Over Governance Lapses, Railway PSU Expects Waiver After Restoring Compliance

Mumbai: Rail Vikas Nigam Limited (RVNL) has received a Rs 9.66 lakh penalty from the National Stock Exchange (NSE) for failing to meet board and committee composition requirements during the quarter ended June 30, 2026.

Penalty details

The state-owned railway infrastructure company said the fine totals Rs 9,66,420, including goods and services tax. NSE communicated the action through a letter dated August 25, 2026, RVNL told the stock exchanges on Wednesday.

The penalty relates to non-compliance with Regulations 17(1), 18(1) and 19(1)(2) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

These provisions govern the composition of a listed company’s board, audit committee, and nomination and remuneration committee. The lapse applies to the quarter ended June 30.

Government controls appointments

RVNL said it had clarified its position to NSE through a letter dated July 27. The company explained that it is a government company under Section 2(45) of the Companies Act, 2013.

Under the law and RVNL’s Articles of Association, the President of India holds the authority to appoint directors to its board. This includes independent directors and a woman independent director.

All RVNL directors are appointed by the Government of India through the Ministry of Railways, its administrative ministry. Consequently, the company said it has no role in selecting or appointing any director.

Waiver may follow compliance

RVNL said the penalty has no impact on its financial position, operations or other activities. It added that the company would become eligible for a waiver under SEBI’s exemption policy after the Ministry of Railways appoints the required number of directors and restores compliance.

The company also pointed to earlier cases in which both NSE and BSE had waived penalties imposed for similar non-compliance.

RVNL made the disclosure under Regulation 30 of SEBI’s listing rules, which requires listed entities to report material regulatory actions and orders to stock exchanges. The latest fine follows exchange scrutiny of mandatory corporate governance standards applicable to listed companies.

Disclaimer: This article is based on RVNL’s regulatory filing and is intended solely for informational purposes, not investment advice or recommendation.