Sector News

Company directors face penalties for not having women on board – SEBI

April 9, 2015
Diversity & Inclusion
(Reuters) – India will consider taking action against directors of companies that do not comply by October with a new rule requiring at least one woman to be on their board, the Securities and Exchange Board of India (SEBI) said on Wednesday.
 
SEBI had last year imposed a quota of one female director on the board of every listed firm. The deadline for compliance expired at the end of last month, after already being extended once last year.
 
The new rule also requires a third of boards to comprise independent directors, who are not related to the promoters or founders of the company.
 
The regulator said companies that do not comply by June 30 will be fined 50,000 rupees with an additional penalty falling due for every day of non compliance thereafter.
 
According to data combined by Prime Database, almost one third of companies listed on the National Stock Exchange still have no women directors on their board.
 
Directors and promoters of companies that still fail to comply with the new rule after September 30 can face additional penalties, the regulator said, without specifying what the punishment will be.
 
(Reporting by Himank Sharma; Editing by Greg Mahlich)
 

comments closed

Related News

July 21, 2024

How a keen focus on DEI helped Etsy’s CHRO exceed the company’s social impact goals

Diversity & Inclusion

At a time of shrinking DEI commitments and growing cynicism around corporate culture, Toni Thompson is paying close attention to what Etsy’s increasingly diverse and growing number of employees need to succeed. Since she joined Etsy in 2020, the company has expanded dramatically, transforming into a ‘house of brands’ with offices in Brooklyn, Chicago, London, Dublin, and Mexico City

July 14, 2024

Why job swapping is an excellent opportunity for black workers

Diversity & Inclusion

Job swapping and job hopping, once viewed negatively, can now be a strategic move to advance the careers of Black professionals, offering an alternative and unconventional way for workers to control their own stability and boost earnings in a relatively short period of time.

July 7, 2024

Why The Gratitude Trap Prevents Women Leaders from Controlling Their Career Narrative

Diversity & Inclusion

During a women’s development program I once facilitated, a participant stood up to share her experience: “Nellie, one of my colleagues told me that I got promoted simply because I am a woman.” Her discomfort and disappointment were visible, and I could see by the expressions of others in the room that this was a familiar scenario. No surprise.

How can we help you?

We're easy to reach