Sebi panel suggests splitting of CMD roles at listed companies

Royalty paid by Indian MNCs to their parents under scanner

The Securities and Exchange Board of India (Sebi) is considering splitting the roles of chairman and managing director (CMD) at listed companies to prevent a potential conflict of interest arising out of the same person playing the two roles. 

The capital markets regulator is also considering greater scrutiny of royalty payments by Indian arms of multinational companies (MNCs) to their foreign parents. 

Both these issues came up for discussion at a meeting held by a Sebi-appointed expert panel to improve corporate governance standards at India Inc, said sources. The 21-member panel, led by Uday Kotak, executive vice-chairman and managing director