IRCON fined for board composition non-compliance

IRCON International Limited received fines totaling INR 11,85,900 each (including GST) from both the National Stock Exchange of India (NSE) and BSE Limited (BSE) on August 29, 2025. The penalties were imposed due to non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically concerning the composition of its board and committees for the quarter ended June 30, 2025.

IRCON clarified that as a government company, the power to appoint directors, including independent directors, rests with the President of India. All directors are appointed by the Government of India through the Ministry of Railways (MoR), and IRCON itself has no direct role in these appointments unless nominated by the government. The company confirmed that requests for the appointment of the requisite number of directors have been made to the MoR.

Despite the fines, IRCON stated that this imposition has no impact on its financial, operational, or other activities, though it has been identified as a "contingent liability." The company anticipates eligibility for a waiver of these fines, as per SEBI's policy, once the Ministry of Railways appoints the necessary directors. Previous instances of non-compliance by IRCON were also resolved with waived fines from both NSE and BSE upon achieving compliance.