New Delhi
The Securities and Exchange Board of India (SEBI) has internal systems in place to handle conflict of interest issues, including a disclosure framework and rules for recusal. This was informed to the Parliament by Minister of State for Finance, Pankaj Chaudhary. To further strengthen these mechanisms, SEBI has formed a high-level expert committee to review and suggest improvements in managing conflicts, disclosures, and related matters involving board members and officials.
This initiative was approved during SEBI’s first board meeting under its new Chairperson, Tuhin Kanta Pandey, held in March. The committee includes experts from various sectors—government, regulatory bodies, and academia—and will review existing rules, especially those related to property, investments, and liabilities. Its recommendations are expected within three months.
When asked whether recent allegations had impacted market stability or prompted leadership review, Chaudhary clarified that such matters are handled internally through SEBI's governance systems.
The committee's goal is to boost transparency, accountability, and ethics in SEBI’s operations. It will also introduce measures requiring board members to disclose details about their assets, including movable and immovable properties.
The SEBI Chairperson has confirmed that the regulator will take steps to make conflict of interest disclosures by board members public. This move aims to increase investor trust and ensure greater transparency in the capital markets.