Key Quantitative Figures
- Fine amount: ₹9,55,800 each from NSE and BSE (inclusive of GST)
- Total fine amount: ₹19,11,600 (combined from both exchanges)
Dates of Action
- Fine imposition date: 27th May 2026 (via letter/email from NSE and BSE)
- Event date and time: 27th May 2026 at 1656 Hrs
- Quarter of non-compliance: ended 31st March 2026
Parties Involved
- Ircon International Limited (the Company)
- National Stock Exchange of India Limited (NSE)
- BSE Limited (BSE)
- Ministry of Railways (MoR), Government of India
- Pratibha Aggarwal, Company Secretary & Compliance Officer (Membership No.: F8874)
Nature of Non-Compliance
Non-compliance with composition of the Board and its committees for the quarter ended 31st March 2026.
Company's Clarification and Rationale
The company clarified to NSE and BSE on 27th May 2026 that:
- Ircon International Limited is a Government Company as per Section 2(45) of Companies Act, 2013
- The President of India holds the power to appoint Directors (including Independent Directors/Woman Director) as per Companies Act, 2013 and Articles of Association
- All Directors are appointed by Government of India through Ministry of Railways (MoR)
- IRCON has no role in appointment of any Director including Independent Directors/Woman Director unless nominated by Government of India
- The company has been continuously requesting MoR for appointment of requisite number of Independent Directors (including Woman Independent Director)
Financial Impact
- The fine has no impact on the financial, operation or other activities of the Company
- The amount has been identified under "contingent liability" in the financial statements
Future Outlook and Precedents
- Upon appointment of requisite number of Directors by MoR and compliance with SEBI (LODR) Regulations, the Company will be eligible for waiver of fines as per SEBI's policy
- In earlier instances of non-compliance, NSE & BSE had waived off fines upon attaining requisite compliances