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SpiceJet may bring Ajay Singh's wife Shivani as woman director

April 12, 2015 13:57 IST

Move aims to comply with Sebi's norm mandating listed companies to have at least one woman director

Budget carrier SpiceJet may bring in new promoter Ajay Singh's wife Shivani Singh on its board to comply with Sebi's norm for listed companies to have at least one woman director.

Sources said Shivani's name figures in the list of probable candidates drawn up by SpiceJet for appointment to its board.

SpiceJet would be the second domestic carrier to have the owner's spouse holding a board position, if her name is approved by competent authorities as well as shareholders, after Anita Goyal of Jet Airways.

Anita, who is the wife of Jet Airways owner and chairman Naresh Goyal, was last week appointed on the carrier's board in order to meet Sebi's regulation.

SpiceJet spokesperson could not be reached for comments.

Even if Shivani is appointed, the carrier would have to pay Rs 50,000 penalty as the deadline to comply with woman director norm ended on March 31.

Among the major domestic carriers, only SpiceJet and Jet Airways are listed on the exchanges while low cost airline Indigo plans to float an initial share sale soon.

Securities and Exchange Board of India (Sebi) has announced a four-stage penalty structure wherein fines would increase with the passage of time.

Listed companies complying between April 1 and June 30 will have to pay only Rs 50,000. Those complying between July 1 and September 30 this year would need to pay Rs 50,000 and an additional Rs 1,000 per day till they comply.

The listed companies complying on or after October 1, 2015 will have to pay Rs 142,000, plus Rs 5,000 per day till the date of compliance.

"For any non-compliance beyond September 30, 2015, Sebi may take any other action, against the non-compliant entities, their promoters and/or directors or issue such directions in accordance with law, as considered appropriate," the regulator had said in a circular.

The market watchdog, in February last year, had asked all listed companies to appoint at least one woman director by October 1, 2014 and later extended the deadline for six months.

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