Imagine you start a company with your own funds, nurture it, build its brand, grow its profits and when it is ready, take it public to raise fresh funds via an IPO. Until this stage, you are its CEO and if you have provided for most of the capital, also likely to be the chairman of the Board. You are used to calling the shots as the leader of management as well as setting the agenda for all strategic Board level meetings. Simply put, you run the show. Fortunately, or unfortunately, you may not be able to do that anymore.
As per the recent amendments in Sebi regulations, from April 1, 2020, chairpersons of the top 500 listed companies in India need to be non-executive directors.