Soon, listed firms may not get to have chairmen, MDs from the same family

At present, several companies have merged the posts of the chairman and managing director as CMD (chairman-cum-managing director)

The Securities and Exchange Board of India (Sebi) may not allow family members, close relatives or related parties of the chairman of a listed firm from becoming managing director (MD), and vice versa, according to a source privy to the development.

At present, several companies have merged the two posts as CMD (chairman-cum-managing director).

When these are split, as proposed by the Sebi-appointed Uday Kotak Committee, holding the two posts by members of the same family will defeat the purpose, leading to an overlapping of the board and management and conflict of interest, said a Sebi source.

The issue surfaced