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    Question

    A listed company did not appoint a woman director on its

    Board. During audit, you find non-compliance continuing for 6 months. What is implication?
    A No impact if company is profitable. Correct Answer Incorrect Answer
    B Only disclosure in Annual Report. Correct Answer Incorrect Answer
    C Monetary penalty under SEBI LODR + reputational risk. Correct Answer Incorrect Answer
    D Auditor must resign. Correct Answer Incorrect Answer
    E Automatic cancellation of listing. Correct Answer Incorrect Answer

    Solution

    Non-appointment of woman director attracts SEBI penalties (Rs. 5,000/day or higher) and reputational damage.

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