Women directors: Companies not complying with Sebi rules is a worrying sign

The average number of women independent directors in Nifty 50 companies is 1.28. In several countries in Europe the percentage is above 30. It is above 25 in the US

The diversification of the board of directors of companies is positive for their performance. While such diversification could be in terms of academic qualification, skillset and expertise, gender diversification has emerged as an important factor in enhancing a company’s performance. A number of studies corroborate this, namely the ICAI Handbook on Role of Women Directors; and The Glass Ceiling-Research Report on Leadership Gender Balance in NSE-200 Companies, 2022, IIMA. Several jurisdictions in the world have adopted a legally binding or at least a nudging approach towards having women directors on the boards of public/listed companies.

The Kotak committee, in its report