Rishad Premji may cease to be Wipro chairman as per SEBI guidelines

Wipro had submitted a proposal to the regulating authority, seeking permission to retain Rishad in an executive role, which was rejected by SEBI

e4m by exchange4media Staff
Updated: Jan 2, 2020 6:23 PM
Wipro

New SEBI guidelines may affect Rishad Premji's chances of continuing as the chairman of Wipro, says media reports. As per the new SEBI guidelines of 2018 for the top 500 listed companies, the chairman should be a non-executive director as of April 1. The new rule could lead to the segregation of the roles into chairman and MD.

Wipro had submitted a proposal to the regulating authority, seeking permission to retain Rishad in an executive role after his father Azim Premji stepped down last year. But SEBI responded by stating that allowing him to function in an executive role will be a direct violation of its guidelines.

The mandate that the chairman should be a non-executive director was proposed in 2017 by SEBI in a committee led by Uday Kotak. The intent was to bifurcate the role of the board from its management, which could improve corporate governance. It was made into a role in 2018 and SEBI gave 500 listed companies a two-year period to restructure.

Wipro has told news outlets that the company will abide by the new laws. Media reports say that the company in its annual report for FY 2019 stated that Rishad may “cease to perform any executive role” and will continue “in the capacity of a non-executive director.”

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