New governance norms: Sebi issues notification to split CMD post

Sebi said that a person will not serve as an independent director in more than seven listed entities

The  Securities and Exchange Board of India (Sebi) has asked the boards of the companies to split the post of chairman and managing director. The regulator has also asked them to have at least six independent directors, including a woman.

The changes need to be put in place in phases, the Sebi said, while setting a deadline of April 1, 2019 for the independent directors. The companies will have more time to split the CMD post, for which the deadline is April 1, 2020.

The move comes after Sebi’s board in March accepted 40 of the 80 recommendations of the Uday Kotak