April 17, 2024 02:35 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
EC bans Randeep Surjewala from campaigning for 48 hours over derogatory remarks against Hema Malini | LS poll: MK Stalin trains guns at PM Modi in his poll campaigns, calls him 'vasool raja', 'anit-Tamil Nadu' | Boat capsizes in Kashmir's Jhelum River, police recover 4 school bags; six feared dead | 'We will finish Lawrence Bishnoi': Eknath Shinde tells Salman Khan over firing incident | Top Maoist leader among 29 killed in massive Chhattisgarh encounter
SEBI changes requirement for separation of chairperson and MD, CEO roles voluntary Corporate Governance

SEBI changes requirement for separation of chairperson and MD, CEO roles voluntary

India Blooms News Service | @indiablooms | 16 Feb 2022, 02:33 am

Mumbai/IBNS: It will be no longer mandatory for listed companies to separate posts of chairperson and managing director (MD) or chief executive officer (CEO), market regulator Securities and Exchange Board of India (SEBI) on Tuesday decided in a meeting.

The changed rule will now fully come into force from April 1, 2022 after several delays.

According to a rule passed by SEBI in 2018, the top 500 listed companies by market capitalisation had to mandatorily separate the role of the chairperson and MD/CEO from April this year following the two-year extension given by the capital market regulator in January 2020.

With the new rule SEBI intended to implement global best practices in terms of corporate governance and to prevent the concentration of power in the hands of one individual in the company.

"SEBI continues to receive representations from industry bodies and corporates expressing various compelling reasons, difficulties and challenges for not being able to comply with this regulatory mandate," SEBI said.

SEBI had mandated the seperation of the chairperson and MD/CEO roles following the recommendation of Uday Kotak-led panel on corporate governance in 2017 to separate the two roles to create a more balanced governance structure for effective and objective supervision of the management.


Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.