The last few days have seen several listed public sector banks' receive letters from the stock exchanges requiring payment of fine for non-compliance with the mandatory woman director norm.
PSBs are in a fix as the banking related laws which prescribes the Board composition structure does not require appointment of a woman director.
With SEBI now prescribing a four stage penalty structure wherein fines increase with passage of time, PSBs are now looking to approach the Department of Financial Services (DFS) in the Finance Ministry for guidance on this matter, banking industry sources said.
PSBs don't want to face a situation where they fork out the fine to SEBI and are later pulled up by the DFS who may take a view that woman director appointment was not required for PSBs.
More than 1,000 companies on the Bombay Stock Exchange and nearly 200 on the National Stock Exchange are in non-compliance of the SEBI requirement, inviting minimum penalty of Rs 50,000.
SEBI recently said that listed companies can escape further regulatory action--beyond monetary fine--if they comply within next six months, that is till September 30, 2015.
As per the recent SEBI announced fine structure, listed companies complying between April 1 and June 30 will have to pay only Rs 50,000 as penalty.
Those complying between July 1 and September 30, the penalty would be Rs 50,000 and an additional Rs 1000 per day till the date of compliance.
Listed companies complying on or after October 1, 2015 will have to pay Rs 1.42 lakh, plus Rs 5,000 per day till the date of compliance.