SEBI Asks Government To Appoint Woman Director On Its Board
SEBI asked companies to appoint at least one woman director on their board.
The Securities and Exchange Board of India has suggested that the government appoint at least one woman director on the regulator's board, in line with its own directions for listed companies' gender diversity on high-table under corporate governance norms.
SEBI had issued guidelines in February 2015 asking companies to appoint at least one woman director on their boards.
"SEBI or its board does not appoint its own board members, the board members of SEBI are appointed by the government," SEBI Chairman UK Sinha said.
"But we have already taken up with the government that we must have at least one woman member on SEBI board although there is no such legal requirement. The SEBI Act does not prescribe it but as a good measure we have asked the government to do it," he added.
The clarification came on the back of various entities including the media raising queries on SEBI's own board not having any woman representative in line with the corporate governance norms issued by it.
Among others, corporate governance norms ensure that every company has at least one woman board director.
"Most of the corporate India has happily introduced it, those who have not done so I would exert them to do so as early as possible," Sinha said.
Interestingly, the SEBI chairman also said that the board in its last meeting has 'voluntarily' decided that its non-executive members can meet separately and evaluate the performance of the regulator.
While noting that the corporate governance rules established in the country have given thorough confidence to the investors all over the world, the SEBI chief said most of corporate India has supported the norms even as some entities had expressed reservations on it.
Further, Sinha expressed the need to clean up "historical baggage" for the capital markets going forward. In this respect, the SEBI chairman said delisting companies which have been suspended from the stock exchanges over a long period of time was a priority.
Noting that SEBI has issued detailed guidelines for such firms and its promoters, Sinha said the same set of norms would be enforced with respect to regional stock exchanges.
Sinha was speaking at the annual capital market conference organised by FICCI.