New Delhi: Life Insurance Corporation (LIC) has redesignated its chairman Siddhartha Mohanty as CEO and Managing Director with effect from June 30, 2024. There is ambiguity if the LIC would appoint a new chairperson or not. However, the capital market regulator wants large listed companies to have separate chairperson and CEO to ensure better corporate governance.
In 2018, the Sebi had amended the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015 mandating the top 500 listed companies to ensure the chairperson to be a non-executive director and not be related to the Managing Director or the CEO. However, in 2022 it climbed down from its earlier diktat, and made it optional for the top listed 500 companies to split the positions of Chairman and CEO.
It is to be noted that LIC, which got listed on stock exchanges in May 2022 at a price of Rs 947 per equity share, has been exempted from several provisions Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015.