Requirement under Companies Act:
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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.
SEBI Requirement:
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The Securities and Exchange Board of India(SEBI) further requires, from April 1, 2020, that the top 1000 listed companies by market capitalization have a woman board member who is also an independent director.
Compliance Status:
According to the data compiled by Institutional Investor Advisory Services(IiAS), 17% of directors in the Nifty 500 companies were women as of the end of the last fiscal with the exception of several public sector enterprises(PSEs).
Why in news?
NASDAQ stock exchange in the US may soon require all companies listed to include at least one female board member as well as one member from a racial minority group or from the LGBTQ community on their board of directors.