State-owned Indian Railway Catering and Tourism Corporation (IRCTC) on Thursday (November 23) said it has been slapped with fines totalling ₹5.4 lakh each by both the National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange (BSE) Ltd for the quarter ending September 2023.
The penalty is a consequence of the company not meeting the requisite number of independent directors, including an independent woman director, on its board during the specified quarter.
The notices from NSE and BSE, dated November 21 and November 23, 2023, respectively, prompted a swift response from IRCTC. In emails dated November 22 and November 23, 2023, the company presented its case for a review of the fines.
IRCTC argued that being a government company, the authority to appoint directors, including independent directors, lies with the President of India, represented through the Ministry of Railways.
Furthermore, IRCTC stated that it consistently engages with the ministry for the appointment of the required number of independent directors, including an independent woman director. The matter is currently pending at the government level.
This is not the first instance of IRCTC receiving such notices. In the past, similar letters were received, and the company's requests for waivers were favourably considered by the exchanges.
Shares of Indian Railway Catering and Tourism Corporation Ltd ended at ₹699.70, down by ₹0.30, or 0.043%, on the BSE.
First Published: Nov 23, 2023 9:48 PM IST
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