BSE fines 370 firms for non-compliance with Sebi norms on woman director

Leading stock exchange Bombay Stock Exchange (BSE) on Thursday 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 30 June. 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 1 October, 2014, which was later relaxed to 1 April, 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 30 September, 2015. Acting against listed firms without a mandatory woman director, market regulator Sebi in April announced a minimum Rs50,000 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 1 April and 30 June will have to pay Rs50,000. Those complying between 1 July and 30 September this year would need to pay Rs50,000 and an additional Rs1,000 per day till compliance.

The listed companies complying on or after 1 October, 2015 will have to pay Rs1.42 lakh, plus Rs5,000 per day till the date of compliance. For any non-compliance beyond 30 September, 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. (LiveMint)