The Securities Exchange Board of India (“SEBI”) on 17 April 2014 had amended clause 49 of the Equity Listing Agreement relating to corporate governance mandating that listed entities should have an optimum combination of executive and non-executive directors with at least one woman director on their board. The timeline to comply with the aforementioned requirement was extended from 15 September 2014 to 31 March 2015.
As several listed companies failed to comply with the aforesaid requirement, SEBI has, vide its circular dated 8 April 2015, prescribed the fine structure that would be imposed by the stock exchanges for non-compliance with the said requirement which is as follows:
| Compliance Status | Fine Structure |
| Listed entities complying between 1 April 2015 and 30 June 2015 | INR 50,000/- |
| Listed entities complying between 1 July 2015 and 30 September 2015 | INR 50,000 + INR 1000/- per day w.e.f. 1 July 2015 till the date of compliance |
| Listed entities complying on or after 1 October 2015 | INR 1,42,000/- + INR 5000/- per day from 1 October 2015 till the date of complia |
Additionally, for any non-compliance beyond 30 September 2015, SEBI would be entitled to take any other action against the non-compliant entities, their promoters and/or directors or issue such directions in accordance with law, as may be considered appropriate.