The board has also advised schools to not allow students to participate in any events sponsored by such firms, which promote the use of tobacco in any form.
It also recommended that schools should not allow any institution to use brand name, logo or any other distinct feature connected with any tobacco products.
The communication is aimed at making schools 'tobacco- free educational institutions', given that India is the second largest consumer of tobacco products in the world.
The display board at the entrance would come with the warning that "sale of cigarettes and other tobacco products in an area within the radius of 100 meters of any educational institution is a punishable offence".
The punishment can be imposed in the form of a fine of Rs one lakh or six month imprisonment.
The latest circular is in continuation of an earlier circular sent to schools spelling out the guidelines on protection from exposure to tobacco smoke in keeping with the World Health Organisation guidelines to all the schools affiliated to it.
"It is also recommended that schools should not allow any institution using brand name, emblem, trademark, logo or trade insignia or any other distinct feature directly/indirectly connected with tobacco products to be associated with students".
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