REC Limited has approached stock exchanges to waive fines levied due to non-compliance with board composition regulations. The issue arose from a lack of independent directors, a situation beyond the company’s control as appointments are made by the Ministry of Power.
The company was fined for not meeting the requirements of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, during the quarter ending December 31, 2025. REC’s board discussed the matter on March 16, 2026, and resolved to follow up with the Ministry of Power to expedite the appointment process.
REC emphasised that as a government entity, the power to appoint independent directors lies with the President of India, through the Ministry of Power. Consequently, REC argues that the fines should be waived since the company has no direct control over the appointments.
The company has submitted a waiver request to the stock exchanges, highlighting that it has not violated any regulations and that the delay in appointments is due to external factors. REC has also requested the exchanges not to impose further penalties.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).