Sebi gives more time to implement CMD post rules

Markets regulator Sebi has deferred by two years till April 2022 its directive for companies to separate the roles of chairman and managing director in view of demand from the corporates and to keep compliance cost lower amid slowing economy.

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.

Now, the date of implementation of the regulatory provision has been deferred to April 1, 2022, the regulator said in a notification without giving any reason for the move.

However, sources said that the decision has been taken in view of demand from corporates and to ease the compliance burden amid the current economic scenario.