The Central Government has notified the National Shipping Board Rules, 2026, introducing a revised governance and procedural framework for the functioning of the National Shipping Board under the Merchant Shipping Act, 2025.
The new rules, issued by the Ministry of Ports, Shipping and Waterways supersede the earlier National Shipping Board Rules, 1960, thereby replacing a regulatory structure that had remained in force for more than six decades.
The newly notified rules are intended to streamline the constitution, functioning, tenure, meetings and administrative processes of the National Shipping Board. The rules came into force immediately upon publication in the Official Gazette.
Under the new framework, the Central Government will establish the National Shipping Board for an initial period of two years and subsequently re-establish it every two years. The rules also address continuity concerns by providing that if a successor Board is not constituted immediately after expiry of a term, the existing Board may continue functioning for a maximum period of six months until a new Board is formed. Further, any actions or decisions taken by a Board during its previous term will remain valid despite its reconstitution.
The rules prescribe a two-year tenure for the Chairperson and other members, excluding the six Members of Parliament forming part of the Board structure. Vacancies in the office of the Chairperson will be filled by Central Government nomination, while vacancies involving Members of Parliament will be filled through elections in the prescribed manner. Other vacancies are to be filled through appointments made by the Central Government. Replacement members will only serve the remaining term of the original office holder.
Detailed provisions have also been incorporated regarding resignation and removal of members. A Chairperson may resign by notifying the Central Government in writing, while members may resign by communicating with the Chairperson. Such resignations become effective upon acceptance or after the expiry of thirty days from receipt of the resignation communication, whichever occurs earlier.
The Central Government has also retained substantial oversight powers over Board membership. Members may be removed for reasons such as prolonged absence from India without permission, absence from three consecutive meetings, insolvency, conviction for offences involving moral turpitude, or ceasing to represent the interests for which they were appointed. Additionally, a member may be removed if the Government records reasons in writing and determines that continuation of such person is undesirable, after giving an opportunity of hearing.
The rules establish the office of Secretary to the Board and clarify the Secretary’s role in convening meetings, maintaining records and carrying out functions entrusted by the Board. Administrative support will be provided by the Director-General, who will also appoint staff required for the Board’s functioning. Salaries, allowances and related expenditure will be met from the budget of the Director-General’s office. The headquarters of the Board will remain at New Delhi.
A significant portion of the notification focuses on procedural rules governing meetings and decision-making. The Board is generally required to meet once every three months. Members must ordinarily receive at least fifteen days’ prior notice of meetings, though urgent matters may be taken up with shorter notice at the Chairperson’s discretion. Members wishing to place specific matters for discussion are required to submit written notice at least seven days before the meeting.
The rules further prescribe that no business can ordinarily be transacted unless at least eight members are present, by establishing the quorum requirement. If quorum is not met, an adjourned meeting may later proceed and transact business even if the quorum requirement is not fulfilled. Voting provisions state that decisions are generally to be made through voting, and in the event of an equal division of votes, the Chairperson will exercise a casting vote.
The Board has also been empowered to form standing or ad hoc sub-committees to facilitate its functioning. Additionally, the rules require the Board to submit an annual report to the Central Government detailing its work during the relevant year. The Board’s working year has been defined as commencing on April 1 and ending on March 31 of the following year.
Notification Details
Notification No. F. No. SY-19014/185/2025-MG
Date: 20/05/2026
