As many as 451 listed companies from the National Stock Exchange (NSE) are still to meet a deadline to appoint at least one woman director on their board, by end of this month, in order to meet the Corporate Governance Code introduced by Sebi about a year back.
Data compiled by Prime Database shows that many large cap and PSU companies are still to appoint at lease one woman director on their boards as required by the guidelines. At least 27 PSU companies are yet to meet this guideline as also largecap companies like L&T, Hero MotoCorp, and all the three listed Adani group firms.
Large to mid sized PSUs like ONGC, NTPC, BPCL, NMDC, GAIL, PFC, REC, Container Corp, SAIL and MRPL, Indian bank, Oriental bank are still to get at least one woman director on board. Even public sector banks like Bank of Baroda and bank Of India meet the requirement, six other PSBs including Punjab National Bank (PNB), Indian Bank, Oriental Bank, Syndicate Bank, Allahabad Bank, and Bank Of Maharashtra are still to comply with the requisite change.
As part of its endeavor to align the Corporate Governance Code with the new Companies Act, the market watchdog, in February last year, had asked companies to appoint at least one woman director on their boards by October 1, 2014. The deadline was was later relaxed to April 1, 2015.
On Tuesday the Parliament was informed that Sebi will take ‘necessary’ action against listed firms which fail to appoint at least one woman director on their boards by the end of this month.
“Sebi will take necessary action when the compliance position by companies is known after March 31, 2015,” minister of state for finance, Jayant Sinha said in a written reply to Rajya Sabha.
The rule is part of norms that involve stronger regulations for listed companies These include clarifications on rules relating to the qualification and appointment of directors as well as independent directors, matters relating to related party transactions, and rules governing meetings of board and its powers.