1,500 companies fail to get women on board, to face Sebi action
The deadline to appoint at least one woman director on the board ended on March 31
Mumbai: Close to 1,500 companies listed on the Bombay Stock Exchange (BSE) will come under fire from the Sebi for failing to appoint one woman director on their board.
The deadline to appoint one woman director on the board of listed companies ended on March 31, 2015, and the regulator had earlier warned that non-compliant firms would face stringent action.
According to BSE data, out of 3,253 companies actively traded on BSE, as many as 1,473 companies have failed to appoint one woman director on their board. On the NSE, out of 1,457 listed companies, 245 companies are yet to appoint women directors.
“It is not just a violation of Sebi provisions, but it’s also a violation of the Companies Act. We will take action in consultation with the regulator against these non-compliant firms,” said a senior BSE official. “The regulator could prohibit directors and independent directors on boards of these non-compliant firms from taking additional directorships in other companies. It could also impose monetary penalties on either the company or its promoters,” said Amit Tandon of Institutional Investor Advisory Services. “If the non-compliant firms are not penalised, it will give a wrong signal to the market participants”.