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The Bombay Stock Exchange (BSE) has hit fine on 530 listed companies for failing to meet a deadline of appointing a women director and boost gender diversity in their boardrooms, said a BSE official.
During last year, the Securities and Exchange Board of India (SEBI) had imposed a quota of at least one female director on the board of every listed firm and in case of failure it warned of “very serious” consequences if the companies did not comply by an April 1 deadline.
The BSE said in a statement, SEBI rules meant companies who failed to comply would face a scheduled fine. This ranging from 50,000 rupees ($790) to 142,000 rupees ($2,240) to Oct. 1, 2015. After this, they would pay an additional 5,000 rupees ($78) per day until they complied.
It further added, “As per the provisions of the SEBI circular, BSE has till date (July 13) issued advisory letters to 530 companies regarding levy of fines for non-compliance with the said provision within the prescribed timelines”.
