INSUBCONTINENT EXCLUSIVE:
SEBI has said that requirement of splitting posts of CMDs by listed entities is not mandatoryMumbai (Maharashtra): Markets regulator
Securities and Exchange Board of India (SEBI) on Tuesday said that the requirement to split chairperson and managing director (MD) and chief
executive officer (CEO) positions at listed companies will not be mandatory and will be implemented on a voluntary basis.The listed entities
chairperson and MD or CEO before April 2022."Owing to rather unsatisfactory level of compliance achieved so far, with respect to this
corporate governance reform, (and) various representations received, (as well as) constraints posed by the prevailing pandemic situation,
provision may not be retained as a mandatory requirement and instead be made applicable to the listed entities on a 'voluntary basis'," SEBI
said in a statement.The deadline for separating the roles of chairperson and MD has been extended multiple times
governance in June 2017 under the chairmanship of Uday Kotak with a view to seeking recommendations to further enhance the corporate
governance norms for the listed companies.This committee had suggested splitting the posts of MDs and CEOs as one of its recommendations on
corporate governance.The main rationale for the recommendation was that separation of powers of the chairperson and MD and CEO may provide a
better and more balanced governance structure by enabling more effective and objective supervision of the management.
