Women directors: BSE fines 370 firms for non-compliance

BSE on Thursday said it had fined 370 companies for not complying with the Securities and Exchange Board of India’s (Sebi) norm on the appointment of at least one woman director on their respective boards, within the prescribed timelines.

The exchange had earlier issued notices to 530 companies in July for not complying with the provision by June 30.

The capital markets regulator had issued guidelines in February last year, asking companies t

 

o appoint at least one woman director on their boards by October 1, 2014, which was later relaxed to April 1, 2015.

BSE said it had “issued fresh advisory letters regarding the levying of fines for non-compliance with said provision” within the prescribed timeline ending September 30.

Acting against listed firms without a woman director, in April, Sebi announced a four-stage penalty structure if companies remained non-compliant beyond six months, wherein fines would increase with the passage of time.

The listed companies complying between April 1 and June 30 will have to pay Rs 50,000. Those complying between July 1 and September 30 would need to pay Rs 50,000 and an additional Rs 1,000 per day till compliance.

Those complying on or after October 1 will have to pay Rs 1.42 lakh, plus Rs 5,000 per day till the date of compliance.

For non-compliance beyond September 30, Sebi might take further action against the non-compliant entities in accordance with the law.