SEBI gave instructions to the listed companies- Separate the posts of Chairperson, MD, and CEO before April 2022.
Capital market regulator SEBI has directed the listed companies to separate the positions of chairperson and managing director by April 2022.
According to the Securities Exchange Board of India (SEBI), the new guidelines do not aim to weaken promoters’ positions.
Listed companies were earlier to segregate the post of Chairperson and MD / CEO by April 1, 2020, but following industry, insistence gave two more years to comply with this guideline.
SEBI gave instructions to the listed companies: This regulation will apply to the 500 largest listed companies in the country in terms of market capitalization.
Addressing a virtual program of Industry Chamber CII, Sebi chairman Ajay Tyagi said that by the end of December 2020, only 53 percent of the 500 top-listed companies had complied with this provision.
Tyagi said, “I urge all eligible listed companies to be ready for change before the deadline expires.”
He said that the goal of separating these posts is not to weaken the promoters’ position but to improve corporate governance.
The stock market liked the decision of RBI, Sensex above 300 points, Nifty crosses 14700.
Today, on the third trading day of the week i.e. Wednesday, the stock market opened with an increase.
The Bombay Stock Exchange’s major index Sensex rose 125.55 points to 49,326.94 and the National Stock Exchange’s Nifty gained 27.50 points to 14,711.00 before the RBI monetary policy committee announcements.
The Reserve Bank of India today presented the first monetary policy review for FY 2021-22. RBI has projected a growth of 10.5 percent in GDP in FY 2021-22.
The Reserve Bank has kept the repo rate at 4 percent, the reverse repo rate at 3.35 percent, the bank rate at 4.25.
On Tuesday, the Sensex closed at a level of 49201.39, up 42.07 points. At the same time, the Nifty closed at 14683.50 with a slight rise of 45.70 points.
The Sensex gained 77.68 points to trade at 49237.00 on the previous trading day, while the Nifty opened at 14643.20 with a slight gain of 5.40 points.