SEBI calls for penalising cos that don't have at least one woman director on board
Securities and Exchange Board of India has called for penalising companies that fail to meet the requirement of at least one woman director on their boards.
May 25, 2017 / 10:00 PM IST
Ajay Tyagi, chairman of SEBI, speaks at a news conference after its board meeting at SEBI headquarters in Mumbai
Batting for an increase in participation of women at board level, market regulator Securities and Exchange Board of India has called for penalising companies that fail to meet the requirement of at least one woman director on their boards.
SEBI Chairman Ajay Tyagi said that the exchange has the power to take action against companies not having at least woman director on their boards. “There is laxity in other penalties that they can impose and collect. Why isn't this amount is not being collected?" Tyagi asked. "At least, the law should be enforced,” he added while speaking on the sidelines of event to release a report titled Corporate India: Women on Boards.
The study on the board composition of Nifty 500 composition was conducted by Institutional Investor Advisory Service, Women on Corporate Board Mentorship Program and Prime Database Group. The report found out 485 companies are compliant with the regulatory threshold. However, 15 companies — 11 of them PSUs — did not have a woman director on the board.
About 107 firms exceeded the quota of one woman director on board.
Meanwhile, Tyagi indicated that the board may soon give approval to Vikram Limaye's appointment as the CEO of National Stock Exchange.
Limaye's appointment had been long pending and SEBI has expressed concerns over his role as part of the Supreme Court-appointed committee to look at the cleanup of the Board of Control for Cricket in India (BCCI).
The market regulator is concerned that Limaye may not be able to efficiently discharge duties as the chief of NSE and has sought clarifications over his role. The Supreme Court had appointed Limaye on the four-member BCCI panel on January 30.
The NSE board has assured SEBI that Limaye's commitment to BCCI is only for short term. However, if he is still part of the committee beyond July NSE board will approach the Supreme Court to release Limaye off his responsibility as part of the BCCI panel.