1,500 cos fail to get women on board, to face Sebi action

The Sebi could prohibit directors and independent directors on boards of such non- compliant firms from taking additional directorships in other companies, says Amit Tandon, co- founder, Institutional Investor Advisory Services

Close to 1,500 companies listed on the Bombay Stock Exchange ( BSE) will come under fire from the Securities and Exchange Board of India ( Sebi) for failing to appoint one women director on their board.

The deadline to appointment one women director on the board of listed companies ended on March 31, 2015 and the regulator had earlier warned that noncompliant firms would face stringent action according to Sebi provisions.

According to data sourced from BSE, out of 3,253 companies actively traded on BSE, as many as 1,473 companies have failed to appoint one women director on their board.

On the National Stock Exchange ( NSE), out of 1,457 listed companies, 245 companies are yet to appoint a women director on their board.

“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, co- founder, Institutional Investor Advisory Services, adding, “If the non- compliant firms are not penalised, it will give a wrong signal to the market participants”.