SEBI made separation of roles of Chairperson and MD/CEO voluntary
SEBI board in its meeting held on February 15, 2022 has decided that the requirement to split Chairperson and Managing Director/Chief Executive Officer positions at listed companies will not be mandatory and will be implemented on a voluntary basis. Earlier SEBI had mandated for separation of the role of Chairperson and MD/CEO of the top 500 listed companies w.e.f April 01, 2022. On this reversing position, SEBI placed some observations that on a review of the compliance status it is seen that the compliance level, which stood at 50.4% amongst the top 500 Listed Companies as on September 2019, has progressed to only 54% as on December 31, 2021. Thus there has been barely a 4% incremental improvement in compliance by the top 500 listed companies over the last two years, hence, expecting the remaining about 46% of the top 500 listed companies to comply with these norms by the target date would be a tall order.
