Over 1,500 companies fined for not appointing woman directors
A total of 1,375 BSE-listed and 191 NSE-listed companies have been fined for failing to appoint women directors on their boards.business Updated: May 06, 2016 18:54 IST
A total of 1,375 BSE-listed and 191 NSE-listed companies have been fined for failing to appoint women directors on their boards.
Out of these, two are public sector banks and 22 other public sector enterprises.
All listed firms are required to have at least one woman director on board from April 1, 2015, as per markets regulator Sebi’s directive as also under the Companies Act, 2013.
These guidelines are aimed at ensuring gender diversity in boardrooms.
As on March 31, out of 5,451 companies listed on BSE, 1,375 have failed to appoint a woman director on their respective boards, Minister of State for Finance Jayant Sinha said in written reply to the Lok Sabha.
Of these 1,375 non-compliant firms, only 201 are active while the remaining 1,179 are suspended.
Out of 1,759 NSE-listed companies, 191 did not comply with Sebi norms. Of these 191 firms, 42 are active and 149 are suspended.
The minister further said fines have been levied on these non-compliant firms.
In a separate reply, Sinha said Sebi has not made it mandatory for listed companies to report whether a director is a family member of promoter.
According to norms, a woman director can be either executive or non-executive or independent or non-independent director.
First Published: May 06, 2016 18:54 IST