Women Directors: Get Ready To Face The Music, Sebi Tells India Inc

NEW DELHI: A large number of listed firms, including some state-run entities, may face regulatory action by Sebi and stock exchanges after failing to appoint at least one woman director on their respective boards.

While the final tally of the non-compliant companies is being tabulated, the authorities have also come across discrepancies in cases where listed firms managed to announce the name of women directors before April 1, sources said.

In some cases, the Director Identification Number (DIN) has been found to be missing for the appointed women directors, while there are also instances of due process not being followed in calling a board meeting for such appointments.

The Corporate Affairs Ministry may also take action against non-compliant entities, as the Companies Act also provides for having at least one woman director on boards of listed companies.

As per initial estimates, nearly 200 companies listed on NSE failed to meet the deadline, while the numbers are much higher for the BSE.

The regulator is yet to take a call on the companies that failed to announce the name of women directors within the deadline, but later announced such appointments while stating that they were made before April 1.

Some companies had also written to Sebi and the exchanges about their 'inability' to meet the deadline, while citing reasons like 'lack of quorum' at their board meetings and sudden exit of their existing women directors.

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