SEBI had inter alia decided that the provision of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) requiring the mandatory separation of the roles of the Chairperson and Managing Director (MD)/ Chief Executive Officer (CEO) of a listed entity, shall be made applicable to listed companies on a “voluntary basis”.

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SEBI had inter alia decided that the provision of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) requiring the mandatory separation of the roles of the Chairperson and Managing Director (MD)/ Chief Executive Officer (CEO) of a listed entity, shall be made applicable to listed companies on a “voluntary basis”.

SEBI had inter alia decided that the provision of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations) requiring the mandatory separation of the roles of the Chairperson and Managing Director (MD)/ Chief Executive Officer (CEO) of a listed entity, shall be made applicable to listed companies on a “voluntary basis”.

On March 22, 2022, following are the amendments in the SEBI (LODR) which have been notified via the SEBI (Listing Obligations and Disclosure Requirements) (Second Amendment) Regulations, 2022:

Regulation 17(1B) of the LODR Regulations has been omitted which inter alia mandated the top 500 listed entities to ensure that the Chairperson of the board of a listed entity shall not be related to the MD/CEO of such a listed entity with effect from April 1, 2022, and
The requirement to separate the posts of the Chairperson and the MD/CEO of the listed entity has been made discretionary. Accordingly, the listed entity may appoint separate persons to the post of the Chairperson and the MD/CEO, such that the Chairperson shall (a) be a non-executive director; and (b) not be related to the MD or CEO as per the definition of the term “relative” defined under the Companies Act, 2013.

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