SEBI’s New Ethics Playbook: Conflict of Interest Gets a Makeover

Updated: November 10, 2025 23:15

Image Source: Moneycontrol

The Securities and Exchange Board of India’s (SEBI) high-level committee has submitted its report after a thorough review of conflict of interest, disclosure norms, and related governance concerning SEBI members and officials. The report aims to bolster transparency, accountability, and ethical standards within the regulator.

The high-level committee (HLC), constituted by SEBI and chaired by former Chief Vigilance Commissioner Shri Pratyush Sinha, has submitted its findings and recommendations following an extensive review of conflict of interest, disclosures, and related matters involving SEBI members and officials. Established in response to rising concerns about transparency and conflicts within the regulator, the committee was tasked with identifying gaps in current policies and strengthening ethical frameworks.

The committee undertook a comprehensive evaluation of existing regulations covering property, investments, liabilities, and the disclosure obligations of SEBI personnel. Key proposed measures include a detailed recusal policy, enhanced public disclosure requirements, restrictions on certain investments, and the digitization of records for better monitoring. Additionally, the report recommends mechanisms enabling public complaints and processes for prompt investigation of conflict-related concerns.

This initiative reflects SEBI’s commitment to uphold high standards of governance, accountability, and public trust, especially following scrutiny of past allegations relating to conflicts of interest at senior levels. The committee’s recommendations will now undergo consideration by the SEBI board for potential implementation.

Notable updates:

Formation of a robust conflict of interest framework tailored to SEBI’s unique regulatory environment
Introduction of stringent public disclosure and recusal protocols for board members and officials
Enhanced digital record-keeping and monitoring measures
Mechanism for public to raise concerns and a formal complaint examination process
Emphasis on accountability to maintain SEBI’s integrity and market confidence

Sources: SEBI official circular and public disclosures, Business Standard, Indian Express, SEBI.gov.in.

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