Sebi slams companies for 'gender bias' in boardroom

Coming hard on listed firms avoiding appointment of, at least, one woman director, the Securities and Exchange Board of India (Sebi) said on Friday that it is very shameful that 8,000-9,000 companies are not finding even one woman competent enough to be on their Boards.

The capital markets regulator has asked all listed companies to mandatorily appoint, at least, one woman director on their Boards by the end of this month failing which they would face regulatory action.

Asserting that the consequences will be very serious, Sebi chairman U.K. Sinha said, "I find it very shameful that in this country, about 8,000 or 9,000 listed companies can't find even one woman who is competent enough to be on their Boards."

Sinha also rejected suggestions that companies would be allowed to go scotfree even if they do not comply with the new norms, which were announced in February 2014. Sebi later gave a six-month extension to its initial deadline of October 1, 2014, and asked all listed companies to have, at least, one woman member on their respective Boards before April 1.

On the sidelines of an event in Mumbai, Sinha said, "Who is saying that there is no penalty? Every regulation made by Sebi has a force of law. Let me remind you, in 2013 when we were insisting of 25-per cent minimum public shareholding, some of my friends in media thought this is just a wish-list of Sebi and not enforceable".

"It's absolutely wrong. You can look at statistics. How many companies have we acted against, where we've posed penalties. Any requirement, including the requirement of a woman director, is something which has to be enforced. And I'm very categorical. If people do not follow it willingly, then it will have consequences. And the consequences will be as per law and can be very serious", he said.

Sebi will also come out with new guidelines for start-ups to raise funds through IPOs while a fresh set of norms will be soon put in place for setting up the country's first International Financial Services Centre.