Splitting Of Managing Director, CEO Posts In Listed Entities Not Mandatory: SEBI

SEBI has said that the requirement to split chairperson and managing director and CEO positions at listed companies will not be mandatory

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 were required to split the roles before April 2022.

“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',” the regulator said in a statement issued after its board meeting.

Earlier the market regulator had asked the top 500 listed companies to split the role of chairperson and MD or CEO before April 2022.