BSE fines 370 firms for non-compliance on woman director

Leading stock exchange BSE on October 8, said it has imposed a fine on 370 companies for not complying with Sebi norms to appoint 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 watchdog SEBI had issued guidelines in February last year asking companies to appoint at least one woman director on their boards by October 1, 2014, which was later relaxed to April 1, 2015.

In a statement BSE said it has "issued fresh advisory letters to 370 active companies regarding levy of fines for non-compliance with the said provision within the prescribed timelines of September 30, 2015.

Acting against listed firms without a mandatory woman director, market regulator SEBI in April announced a minimum Rs 50,000 fine and warned of further action, including against promoters and directors, if they remain non-compliant beyond six months. Securities and Exchange Board of India (SEBI) announced a four-stage penalty structure 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 this year would need to pay Rs 50,000 and an additional Rs 1,000 per day till compliance.

The listed companies complying on or after October 1, 2015 will have to pay Rs 1.42 lakh, plus Rs 5,000 per day till the date of compliance. For any non-compliance beyond September 30, 2015, SEBI may take any other action, against the non-compliant entities, their promoters and/or directors or issue such directions in accordance with law, as considered appropriate.