Exploratory Study to Assess the Implementation of Laws on Promoting Gender Equality in the Corporate Sector in India

In India, there are multiple laws to ensure gender equality in the corporate sector. Women continue to be underrepresented in the corporate sector. Globally women make up only 17 per cent of the board of directors in listed companies and 10 per cent of higher management. In this research study, we examined the implementation effectiveness of three recent laws introduced to strengthen commitment to gender equality in the Indian corporate sector – 1) Section 149 of the Companies Act, 2013 (Section 149 mandates at least one-woman Independent Director on listed Boards), 2) Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and 3) Regulation 34, Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations (2015) and Amendment (2021) mandating BRSR (Business Responsibility and Sustainability Reporting). The study relied on qualitative interviews with 73 stakeholders and quantitative data from annual reports of 301 listed companies in India.

Our research showed that listed companies have substantially complied with the provisions of law. Still, men account for 81.89 per cent (2020-21) of the Board positions and women continue to be the minority gender. Women face several challenges in rising upwards in the corporate ladder. We conclude that enhanced quotas will bring a critical mass of women on Boards, who can in turn catalyze gender positive change.