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)
 

Related News

September 11, 2020

How To Deploy Training Effectively To Improve Diversity And Inclusion

Diversity & Inclusion

So you need diversity training? That’s great, but consider this. How will diversity and inclusion training impact your organization, if you do not have the systems in place to make diversity […]

September 2, 2020

How to build a race-conscious equity, diversity, and inclusion strategy

Diversity & Inclusion

When I joined venture capital firm GV in January as the firm’s first diversity and inclusion partner, I was excited by the opportunity to help with one of the industry’s […]

August 27, 2020

Facebook CMO Antonio Lucio is stepping down to help companies accelerate diversity efforts

Diversity & Inclusion

Facebook’s chief marketing officer is stepping down next month after two years in the role. Antonio Lucio—who joined the social network in 2018 after spending several years as CMO at […]