Union finance minister Nirmala Sitharaman said the capital markets regulator should hear the concerns raised by corporate India on the requirement to split the roles of chairman and managing director (CMD) by April 1, but made it clear that she was not giving any diktat to an independent body.

In a post-budget interaction with captains of industry, Sitharaman exhorted India Inc to “quickly” step up capital expenditure to aid the virtuous cycle of investment gain traction and push growth.

The FM also acknowledged the need to be watchful of the increase in interest rates in developed countries and the high commodity prices.

Sitharaman responded to the industry’s concern on the splitting of the positions of chairman and managing director by April 1, 2022, as mandated by the Securities and Exchange Board of India.

“I agree that the way Indian companies are built over the decades depends on the family members and relatives being on the board; so I am of the view that Sebi should hear companies’ view on the matter. However, being an independent regulator, I am not giving them diktats,” she said at the interaction organised by industry body CII on Saturday.

Listed entities were initially required to separate the roles of chairperson and MD/CEO by April 1, 2020. However, following industry representations, the deadline was pushed back by two years. The regulation is now proposed to be applicable to the top 500 listed entities by market capitalisation, with effect from April 1, 2022.