Separation of the post of Chairperson and Managing Director

Subject – Economy

Context – Over a third of top-500 firms yet to split MD and chair roles

Concept –

Over a third of the top 500 companies by market cap are yet to comply with SEBI’s requirement to split the post of chairperson and managing director by April 2022 deadline.
Taken together, almost half the companies, or 49.6 per cent, are still not compliant with the SEBI norm that aims to improve corporate governance.
Under the SEBI norms, the top 500 listed entities by market capitalisation were mandated to comply with the requirement of separation of the roles of chairperson and managing director (MD) or chief executive officer (CEO) with effect from April 1, 2020. This was deferred by two years to April 2022.
The norms were part of the series of recommendations given by the Sebi-appointed Kotak committee on corporate governance.