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145 of India’s top 500 companies have CMD post, must rejig the top

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The top 500 companies by market capitalisation need to fulfil the new requirement by 2020.
The top 500 companies by market capitalisation need to fulfil the new requirement by 2020.

In a move to strengthen independence of the board of directors, the Securities and Exchange Board of India (Sebi) has mandated separation of the position of chairperson from that of managing director (MD) or chief executive officer (CEO). The top 500 companies by market capitalisation need to fulfil the new requirement by 2020.

According to an ET Intelligence Group’s analysis, there are 145 companies among India’s top 500 listed companies, based on market cap, which have the same executive serving as chairman as well as the MD. Among sectors, capital goods tops the list with 11 companies having the same person as chairman and MD, followed by pharmaceuticals (10) and finance (9).

In the sample, 36 companies had market cap above Rs 20,000 crore. The 30 companies that had market cap between Rs 10,000 crore and Rs 20,000 crore include Apollo Tyres, Arvind, Escorts, Glenmark Pharmaceuticals, and Motilal Oswal Financial Services. Companies including Aegis Logistics, Minda Industries, Dish TV, SpiceJet, Dr Lal PathLabs and Persistent Systems were among those with less than Rs 10,000 crore of market cap each. There were 10 companies in the sample of 500 which had the same person as chairperson and CEO including Alembic Pharma, Apar Industries, HEG, Hero MotoCorp and KPIT Technologies.

145 of India’s top 500 companies have CMD post, must rejig the top



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