Key Quantitative Figures

  • Total fine payable: ₹531,000 (inclusive of 18% GST)
  • Basic fine amount: ₹450,000
  • GST amount: ₹81,000
  • Fine prescribed: ₹5,000 per day for Regulation 17(1) non-compliance
  • Non-compliance period: Quarter ended March 31, 2026
  • Processing fee for waiver (if applicable): ₹10,000 plus 18% GST

Dates of Action

  • May 27, 2026: NSE and BSE issued fine notices
  • June 28, 2026: Board of Directors meeting held to discuss the matter
  • July 14, 2026: Company's response letter signed and submitted
  • 15-day payment deadline from May 27, 2026

Parties Involved

  • REC Limited (the Company)
  • National Stock Exchange of India Limited (NSE)
  • BSE Limited
  • Ministry of Power, Government of India (appointing authority)
  • President of India (ultimate appointing authority)

Purpose and Rationale

The fines were imposed for non-compliance with requirements pertaining to the composition of the Board of Directors during Q4 March 2026. The company attributes this to its status as a Government Company where the power to appoint Independent Directors is vested with the President of India acting through the Ministry of Power.

Financial Impact

Explicit financial impact of ₹531,000 payable to the exchanges. The disclosure states that continued non-compliance could result in:

  • Freezing of the entire shareholding of the promoter
  • Transfer to Z group
  • Suspension of trading of equity shares (if second consecutive quarter of non-compliance)

Board Response and Actions

  • The Board noted the position of non-compliance and the fines imposed in their June 28, 2026 meeting
  • The Board desired regular follow-up with the Ministry of Power to expedite appointment of requisite number of Independent Directors
  • The company requested waiver of fines citing its governmental structure where it has no role in director appointments

Procedural Requirements

  • Payment required within 15 days from May 27, 2026
  • Waiver application must be submitted through NEAPS portal with detailed reasons
  • Compliance is prerequisite for waiver application
  • Non-refundable processing fee of ₹10,000 + GST applicable if fine exceeds ₹5,000
  • Board comments must be submitted to exchanges for dissemination

Banking Details for Payment

NSE Payment Details:

  • Beneficiary: National Stock Exchange of India Limited
  • Bank: IOBI BANK LTD
  • Branch: Bandra Kurla Complex, Mumbai
  • RTGS/IFSC Code: IBKL0001000

BSE Payment Details:

  • Beneficiary: BSE Limited
  • Bank: ICICI Bank Ltd. - CMS Branch
  • Virtual Account No.: BSER09575
  • IFSC Code: ICIC0000104