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.
