JAMMU, Jan 17: The Securities and Exchange Board of India (SEBI) has deferred by two years to April 2022 its directive for listed companies to split the roles of Chairman and Managing Director.
The decision was taken in view of demand from Corporates and to keep compliance burden low in the wake of the current economic scenario.
Worthwhile to mention here that there has also been a proposal to split the post of Chairman-cum-Managing Director of the Jammu and Kashmir Bank.
According to SEBI norms, the top 500 listed entities by market capitalization were mandated to comply with the requirement of separation of the roles of Chairperson and Managing Director or Chief Executive Officer with effect from April 1, 2020. The norms were aimed at improving corporate governance structure of listed companies.
Now, the date of implementation of the regulatory provision has been deferred to April 1, 2022, according to sources.