Key Quantitative Figures
- Fine amount: ₹94,400 imposed by each exchange (NSE and BSE)
- Period of non-compliance: Quarter ended March 31, 2026
Dates of Action
- Fine imposition date: May 27, 2026 (NSE letter and BSE email date)
- Board meeting date: June 25, 2026
- Disclosure date: July 09, 2026
Parties Involved
- RITES Limited (the Company)
- National Stock Exchange of India Limited (NSE)
- BSE Limited
- Ministry of Railways, Government of India (Administrative Ministry)
- Hon'ble President of India
Specific Non-Compliance
Failure to appoint woman director as required under Regulation 17(1) of Listing Regulations for the quarter ended March 31, 2026.
Board Deliberations and Response
The Board of Directors deliberated the matter in their meeting on June 25, 2026 and noted:
- The non-compliance is beyond the control of the Company
- The Company had taken proactive steps by informing and requesting the Administrative Ministry (Ministry of Railways) well in advance about the potential non-compliance
- The Board expressed concern about the notice received from BSE & NSE
- The Board advised that the Administrative Ministry be requested on regular basis to expedite the process to appoint requisite number of independent directors including woman independent director
Governance Structure Constraints
Being a Government Company, as per Articles of Association, the power to appoint Independent Directors on the Board is vested with the Hon'ble President of India acting through administrative Ministry (Ministry of Railways). The Company has no role in the appointment of Directors.
Financial Impact
The fine amount of ₹94,400 per exchange has been imposed, totaling ₹188,800. No additional financial impact is quantified in the disclosure.
Compliance Officer Details
- Nikhil Agarwal, Company Secretary & Compliance Officer
- Membership No.: A42626
- Digital signature verification included