April 26, 2024 03:28 (IST)
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NSE issues notices to 115 active listed companies to include women directors on board
New Delhi, July 22 (IBNS): India's leading bourse National Stock Exchange of India (NSE) has taken up the issue of gender diversity in boards with listed companies.
The exchange has conducted a study of listed companies recently. About 88% of the companies seem to have complied with the SEBI directive among the NSE listed companies. Very interestingly studies have shown that companies with multiple woman directors have performed better.
In compliance with the SEBI directive NSE has issued notices to 260 companies (this includes suspended companies) who have not complied so far. With some companies replying, rest are at various stages of evaluation.
Out of these companies 145 are in the suspended companies while rest are active. After serving these notices recently, one has already complied while many are expected to follow. The total listed companies (including Debt and MF) are 1750 & out of these companies 189 were suspended due to non compliance of various nature.
The study was undertaken in association with N Balasubramanian, Adjunct Professor, IIM – Ahmedabad. The study has revealed that 1186 companies have women directors on board out of 1451 as on 1 April 2015. Covered companies are those which were mandated to have women directors and for which women directors’ data is available.
In case the companies remain non compliant, as per SEBI circular dated April 08, 2015, the exchanges are advised to levy fines on listed companies for non-compliance with the requirement of Clause 49 II (A) (1) i.e. non appointment of woman director on quarterly basis . As mentioned, NSE has already issued notices to non-compliant companies.
Generally, there is a business case for gender diversity in the boards. It can have few key dimensions, like, increasing board effectiveness, augmenting company performances etc among others. It is revealed that regulatory mandates accompanied by awareness programs help achieving a better ratio. The study has also revealed that Norway has made the best progress. Among the BRICS nations, South Africa leads the group with 17.6%, while Brazil is lagging at 5.3% and India is placed with 9.5% women director.
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