Market regulator Securities and Exchange Board of India (SEBI) has deferred to April 2022 its directions for top 500 companies to comply with on separating roles of chairman and managing director (MD).
In a notification on 13 January 2020, SEBI says the date of implementation of the regulatory provision has been deferred to 1 April 2022. There was reason given by the market regulator for this change.
In March 2018, SEBI had recommended separation of post of CEO and MD and chairperson that was supposed to be first applicable for top 500 entities from 1 April 2020.
Earlier in October 2017, the Uday Kotak Committee
set up by SEBI (the third such committee set up by SEBI over the last two decades) had recommended separation of powers of the chairperson or leader of the board) and CEO and MD or leader of the management, in phased manner to provide a better and more balanced governance structure.