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Diversity Requirements In Indian Companies

  • IASbaba
  • December 15, 2020
  • 0
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Diversity Requirements In Indian Companies

Part of: GS Prelims and GS-III – Economy

In news

  • 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.

Key takeaways

  • 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.

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