Sebi may make succession plan a must in listed companies

All listed Indian companies will need to put a succession plan in place if the capital market regulator implements a proposal that's under consideration as part of efforts to ensure that an organisation is not caught unawares by the death, departure or poor performance of a leader, all of which could hurt investors. The proposal comes against the backdrop of most Indian companies not having a formal succession programme for appointments to the board and senior management positions, the lack of which can have an adverse impact on strategic direction, financial performance and productivity.

Read the Economic Times news report here.