With a regulatory requirement for top-500 listed firms to split the position of chairperson and managing director being less than four months away, pressure is mounting on several PSUs including from the power sector to ensure compliance, especially after state-run ITDC NSE -2.78 % complied with this rule following Sambit Patra’s appointment as chairman.
While the capital markets regulator Sebi had initially asked listed companies to separate the roles of chairperson and MD/CEO from April 1, 2020 onwards, it decided to give additional two years for compliance based on industry representations.
The regulation will now be applicable to the top 500 listed entities by market capitalisation, with effect from April 1, 2022.
