Chennai, July 15 (IANS): Stock exchange BSE has cracked the whip on 530 companies that have not appointed a woman director, asking them to pay up the fine for non-compliance, said an official.

"We have sent notices to 530 listed companies out of 4,262 companies that are eligible for trading. The total number of companies that are listed in BSE are 5,712 and out of them 1,450 have been suspended," the official, who didn't want to be named, told IANS over phone from Mumbai.

According to him, the BSE till date has issued advisory letters to 530 companies regarding levy of fines for non-appointment of women directors.

Markets regulator Securities and Exchange Board of India (SEBI) had stipulated listed companies should have at least one woman representative on their board. Several of the companied met the SEBI deadline of March 30 by finding suitable persons and some by appointing close relatives of promoters.

However, industry watchers said the BSE action will not be very effective.

"The penalty amount is very low and is not a deterrant for non-compliance," Prime Database managing director Pranav Haldea told IANS over phone from New Delhi.

According to SEBI, listed companies that comply with the norm between April 1-June 30 would be levied a fine of Rs.50,000.

For companies that comply with the stipulation between July 1-September 30, the fine will be a total of Rs.50,000 plus Rs.1,000 per day from July 1 till the date of compliance.

For listed companies that appoint women directors on or after October 1, the fine is Rs.142,000 plus Rs.5,000 per day from October 2015 till the date of compliance.

For any non-compliance beyond September 30, 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.