Diversity Requirements In Indian Companies
Part of: GS Prelims and GS-III – Economy
- The NASDAQ stock exchange in the US may soon require all listed companies to include at least one female board member and one member from a racial minority group or from the LGBTQ community on their board of directors.
- There also diversity requirements from Indian companies and they are expected to comply with these rules.
- All public companies which are listed on stock exchanges and companies with either a paid-up capital of Rs 100 crore or annual turnover over Rs 300 crore are required to have at least one woman board member under the Companies Act.
- The Securities and Exchange Board of India (SEBI) further requires, since April 1, 2020, that the top 1000 listed companies by market capitalisation have a woman board member who is also an independent director.
Do you know?
- According to data compiled by Institutional Investor Advisory Services (IIAS), 17% of directors in the Nifty 500 companies were women.
- The report by IiAS noted that only 3% of Nifty 500 companies had no women directors.
- SEBI: Click here