Separation of chairperson, managing director posts in listed companies will be voluntary, not mandatory: SEBI

Capital markets regulator Sebi on Tuesday said it will not be mandatory to separate the posts of chairperson and managing director/chief executive officer in listed companies. It will be implemented on a voluntary basis.

Segregation of posts for empaneled units was mandatory from April 2022.

“The SEBI Board of Directors has decided that the provision for segregation of posts for listed entities will be voluntary rather than mandatory,” Securities and Exchange Board of India (SEBI) said in a release after the meeting of the Board of Directors.

Finance Minister Nirmala Sitharaman said earlier this month that if Indian companies have any views on the matter, the regulator should look into it. However, she made it clear that she was not giving any instructions.