263 companies or 16 per cent have not complied with Sebi’s women director norm
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New Delhi: As many as 2,015 companies listed on the BSE and 263 on the NSE are yet to comply with market regulator Sebi’s directive to appoint at least one woman director on the board, the Lok Sabha was informed on Friday. Of the 1,624 companies listed on the NSE, 1,361 companies have complied, while 263 companies or 16 per cent have not complied with Sebi’s women director norm, minister of state for finance Jayant Sinha said during Question Hour. Of the 5,305 companies listed on BSE, 3,290 companies have complied with and 2,015 companies or 38 per cent have not complied with the norm as on April 16, he added.
Sebi had issued guidelines in February 2014 asking companies to appoint at least one woman director on their boards by October 1, 2014 which was later relaxed to April 1, 2015.
“The government has been vigilant on the matter of appointment of women director... It is in companies’ interest to diversify so that there functioning can improve. There are a large number of companies which are yet to comply... The corporate sector is charged with the issue,” he said.
When asked about the process that the government will undertake for PSUs to comply with this norm, he said “this is methodical process and we need to ensure that capable people are on the board. We are going through that vetting process. Impeccable vetting process will take some time”. For private sector companies, Mr Sinha said since it is a market-driven economy, it is up to them to comply. “We can only guide and frame rules. After that it is up to the companies to implement.”Non-compliant firms will have to pay only the monetary fine and can escape further regulatory action if they comply within next six months, till September 30.
( Source : PTI )
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