New Delhi: To ensure gender diversity in boardrooms, capital market watchdog Sebi should look at having at least one independent woman director in listed companies over a period of time, according to proxy advisory firm IiAS.
The suggestion comes at a time when many listed companies are required to comply with the Sebi's norm of having at least woman director on their boards. The deadline ended on March 31.
"Sebi must change the requirement, over time, to having at least one independent woman director," IiAS said on Thursday .
From April 1 onwards, all listed companies are required to have at least one woman director on their boards as per a new Sebi directive, as also under the Companies Act, 2013.
The firms have been warned of "serious consequences", including hefty penalties for non-compliance.
Noting that a number of companies are yet to comply with guidelines on appointment of woman directors, IiAS said that it expects Sebi to take action.
"In recent times, Sebi has increased its focus on strengthening corporate governance and may take this opportunity to establish the seriousness of its intent.
"This time around Sebi could restrain the promoters and directors of non-compliant companies from holding any new position as director in listed companies at the outset, except to help comply with these regulation," it noted.
According to IiAS, the penalty might increase with the passage of time, "which may include severe financial penalties and eventually restrictions on accessing the capital market".
