According to an official statement, markets regulator SEBI has changed the requirement for listed companies to have the roles of chairperson and MD and CEO from mandatory to voluntary.
The regulator had earlier made it mandatory for the top 500 companies to assume the role of chairman and MD/CEO of listed companies with effect from April 01, 2022.
SEBI said the decision was taken after considering the unsatisfactory level of compliance achieved so far.
Keeping in view the unsatisfactory level of compliance received so far with respect to this Corporate Governance Reform, various representations received, constraints arising out of the prevailing pandemic situation and to enable companies to plan for a smooth transition, SEBI The Board at this juncture decided that this provision cannot be put in place as a mandatory requirement and can instead be applied to listed entities on a “voluntary basis”, Sebi said.
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