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

This has given rise to suspicion that the companies could have just done a 'tick-box' job with the appointment in giving names of the women directors, without actually having brought them on board as yet.

Sebi had first issued the guidelines in February 2014, seeking compliance before October 1 that year, but later extended the deadline by six months.

The companies have, however, mostly appointed wives or daughters of their promoters or top executives, while some have also replaced their independent directors with their female family members, mainly wives, daughters or sisters.

According to leading proxy advisory firm, Institutional Investor Advisory Services India Ltd (IiAS), having a woman director on board is just the first step towards board diversity.

"Given that companies have had more than one full year to comply, we expect Sebi to take action," the proxy firm said.

Sebi has warned of strict penal action against the firms that fail to comply, while Chairman U K Sinha recently said it was "really shameful" that many companies were not being able to appoint even one woman director.

Sebi will look into the final compliance status and begin the process for undertaking necessary action against the non-compliant companies.

Similar action would be initiated by the Corporate Affairs Ministry for non-compliance to the Companies Act provisions.

Earlier, the new regime was applicable to all the listed firms. Sebi later exempted smaller companies -- those having equity share capital of up to 10 crore and networth not exceeding 25 crore, as also those listed on the SME platforms of the stock exchanges -- from the mandatory compliance "for the time being".

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