Giving in to lobbying

Deadline extension for splitting CMD post is unfortunate

The Securities and Exchange Board of India (Sebi) has decided to give two more years to comply with its directive to separate the posts of managing director (MD) and chairman of the board in top 500 listed companies by market value. No clear reasons are available for this decision, but it comes after a great deal of lobbying by some of the companies affected. The rules stipulated that the chairman of the board should be a non-executive director and should not be related to the managing director or chief executive officer. It didn’t apply to companies that didn’t have identifiable