Splitting headaches

Sebi should have opted for a gradual approach

The Securities and Exchange Board of India’s (Sebi’s) decision to convert a mandate to separate the roles of the chairman and managing director/chief executive officer (MD/CEO) in the top 500 listed corporations by market capitalisation into a voluntary exercise defies logic. The mandate was one key recommendation by a Sebi committee on corporate governance, in 2017. The idea was that separation of power between the chairman and MD/CEO will enable better governance structure and provide more effective supervision of the management. This would have helped protect the interest of all stakeholders. Following this, Sebi amended listing regulations in 2018, stipulating