Markets regulator Sebi has changed the requirement for listed companies to separate roles of chairperson and MD & CEO to voluntary from mandatory, according to an official statement.
The regulator had earlier mandated the separation of the role of chairperson and MD/CEO of listed companies to be applicable from April 01, 2022 for top 500 companies.
The decision was taken after considering rather unsatisfactory level of compliance achieved so far, Sebi said.
Considering rather unsatisfactory level of compliance achieved so far, with respect to this corporate governance reform, various representations received, constraints posed by the prevailing pandemic situation and with a view to enabling the companies to plan for a smoother transition, as a way forward, SEBI Board at this juncture, decided that this provision may not be retained as a mandatory requirement and instead be made applicable to the listed entities on a “voluntary basis,” Sebi said.
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