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

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:  

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