Woman board member: 180 NSE listed firms failed to comply

The deadline for induction of woman director expired on March 31.

 

As many as 180 companies listed on the National Stock Exchange (NSE) have not inducted a woman director so far as required by the Companies Act and officials expect the market regulator to come out with its views and penalties for non-compliance.
 
The deadline for induction of woman director expired on March 31.
 
"At least 180 companies out of 1,456 NSE listed companies that have to comply with the rule of having a woman director have failed to fulfil the requirement," Pranav Haldea, managing director, Prime Database told IANS over phone from New Delhi.
 
The company operates in the database space pertaining to the primary capital market, covering fund raising by Indian corporates.
 
"Perhaps next week, the SEBI (Securities and Exchange Board of India) shall come out with its order on companies that have not complied with the woman director norm," he said.
 
Supreme Court advocate and insurance, company, competition law expert D. Varadarajan told IANS: "Simply put, every listed company or every other public company having a paid up capital of Rs.100 crore or more or a turnover of Rs.300 crore or more should have a woman on its board."
 
A company and every officer of the company who is in default shall be punishable with fine which shall not be less than Rs.50,000 but which may extend to Rs.500,000 under the company law, Varadarajan said.
 
"This is a positive move to include women in the mainstream of corporate governance," Rajshree Pathy, chairperson, Confederation of Indian Industry-southern region (CII-SR), told IANS.
 
Pathy is also the chairperson and managing director of the Coimbatore-based Rajshree Sugars and Chemicals Ltd.
 
"Women are naturally inclined to think of aspects/dimensions in a business that men sometimes are in denial/ignore for reasons best known to themselves that may impact the performance of the board. Therefore, women could potentially add that extra value," she said.
 
Agreeing with her was Haldea, who said: "A woman director would certainly bring a different perspective on varied issues that men may overlook."
 
However, he said many companies have inducted close relatives of the promoters to comply with the law.
 
"However, women on the board merely for the sake of a legislation should not be construed as 'patronising' of women," Pathy said.
 
She added: "Board members, man or woman should be selected on merit, achievements and for the purpose of adding value to the company. The selection process is important."
 
Speaking at a training programme for woman directors, organised by Madras Chamber of Commerce and Industry, Ranjana Kumar, former chairman and managing director of Indian Bank, said: "Be assertive and do not get overawed by the company size or other personalities in the board."
 
Kumar, who also headed NABARD and Canara Bank, and worked as director in several corporate boards said woman directors should be assertive at the board meeting and their views should be supported by data and facts.
 
She told the gathering to remember that independent directors represent the shareholders. Kumar also urged aspirants to go through in detail not only the board meeting agenda papers, but also the minutes of previous board meetings.
 

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Nifty, Sensex in a bullish mode – Weekly closing report

Nifty is headed for 8,700 and Bank Nifty possibly for 19,000 

 

The S&P BSE Sensex closed the week that ended on 1st April at 28,260 (up 802 points or 2.92%), while the NSE’s CNX Nifty closed at 8,586 (up 245 points or 2.94%). In the previous week, we had mentioned that Nifty, Sensex may rally next week but the rally, most likely, will be a weak one. 
 
On Monday, NSE’s CNX Nifty register gains on lower volume. A positive opening followed by a range bound session gained momentum in the noon session. By the end of the session, the 50-share index hit a three-day high and closed near to it. Nifty closed at 8,492 (up 151 points or 1.81%).  The Reserve Bank of India (RBI) relaxed norms for non-performing assets (NPAs), according to which, banks can now use 50% of their floating provision for specific NPA provision as compared to 33% earlier.
 
China unveiled more details and projections for its "New Silk Road" plan to boost trade and economic relations with the rest of Eurasia and Africa.
 
The upward move on Tuesday was followed by the Nifty giving up all the gains midway and finally closing flat. The benchmark closed at 8,491 (down 1 points or 0.02%). The Income Tax (I-T) department on Tuesday took to the strategy of 'naming and shaming' of some large tax defaulters as it published names of 18 entities who owe over Rs500 crore of taxes to the exchequer.
 
The natural gas price was cut by about 8% to $4.66 a unit to reflect the softening in international prices. This is the first reduction in price of natural gas in India.
 
We anticipated on Tuesday that the 50-share benchmark is still in an uptrend. Nifty closed at 8,586 (up 95 points or 1.12%) on Wednesday.
 
The eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) have recorded 1.4% growth in February 2015 over February 2014.
 
The Cabinet Committee on Economic Affairs (CCEA) approved a major policy intervention, to supply gas at uniform delivered price to all fertilizer plants on the gas grid for production of urea through a pooling mechanism. It is expected that the cost of production of urea at pooled price would be less than the price of imported urea.
 
India's stock markets remain closed on Thursday and Friday for Mahavir Jayanti and Good Friday, respectively.
 
Of the 1,444 companies on the NSE, 1,281 companies closed in the green, 133 companies closed in the red while 30 companies closed flat.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 
 

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Saurashtra Cement: Improving Fundamentals
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Saurashtra Cement Limited (SCL) is the flagship company of the Mehta group. SCL is one of the smaller players in the Indian cement industry. It manufactures Portland Pozzolana Cement (PPC), Ordinary Portland Cement (OPC) and Sulphate Resisting Portland Cement (SRPC). SCL markets its products under the brand name...
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