National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) have levied a fine of ₹14,04,200 each (including GST) on Ircon International Limited (IRCON).
The fines were imposed via letters/emails dated 29th May, 2025, for non-compliance with Regulations 17(1)/2(A), 18(1), 19(1)/(2), 20(2)/(2A), and 21(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The non-compliance pertains to the composition of the Board and its committees for the quarter ended 31st March, 2025.
IRCON clarified to NSE and BSE on 30th May, 2025, that as a government company, the President of India, through the Ministry of Railways (MoR), holds the power to appoint directors, including independent directors. IRCON has no role in these appointments unless nominated by the Government of India.
The company has consistently requested the Ministry of Railways for the appointment of the requisite number of directors.
IRCON stated that the imposed fine has no impact on its financial, operational, or other activities, but it has been identified as a "contingent liability" in its financial statements.
The company expects to be eligible for a waiver of these fines upon achieving compliance with the regulations, as has happened in previous instances of non-compliance after the required compliances were met.