RVNL, IRCON, HAL and several other companies informed that they have been fined by the NSE and BSE.
What Happened: The rail major has been fined a cumulative sum of over ₹10 lakh by the exchanges, the company said in a press release.
RVNL has been fined for non-compliance with regulations which requires that at least half of the board members be independent, including women. The company failed to abide by the rules for the quarter ending June 30, 2024.
It has issued a clarification to the exchanges saying that, as a government entity, it does not have a role in appointing any directors.
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"As per provisions of the Companies Act, 2013 and Articles of Association of the Company, the President of India vests with the power to appoint directors (including Independent director) on the board of RVNL. All directors in RVNL are appointed by the Government of India through its Administrative Ministry, Ministry of Railways and RVNL has no role to play in the appointment of any director,” the filing stated.
The exchanges have also charged Garden Reach Shipbuilders (GRSE), Bharat Heavy Electricals (BHEL), Bharat Petroleum Corporation (BPCL), and several others over the composition of their board.
Price Action: Shares of RVNL closed 1.23% higher at ₹570.85, GRSE closed 2.85% lower at ₹1,750.10, IRCON ended 0.13% up at ₹265.05, BHEL was up 0.88% at ₹299.25, BPCL lost 0.37% to settle at ₹349.90, HAL ended 0.78% higher at ₹4,768 on Thursday.
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