Disclosure guidelines, conflict of interest definition, other key takeaways in high-level panel's report to SEBI

A high-level panel -- headed by former Chief Vigilance Commissioner Pratyush Sinha -- has prepared and submitted a report on 'Conflict of Interest, Disclosures and Related Matters in respect of Members and Officials' to market regulator SEBI. Calling for stronger conflict-of-interest and disclosure norms, the panel has found SEBI’s existing framework weak and scattered, proposing a host of reforms aimed at boosting transparency as well as public confidence.

The panel's key recommendations include the following aspects:

• Public disclosure of assets by SEBI Chairperson and senior officials
• A uniform ethics policy for staff and board members
• Digital tracking of disclosures
• A new Ethics & Compliance Office

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Here are 10 key takeaways from the report by the panel, which was formed during Madhabi Puri Buch’s tenure as SEBI Chairperson following the alleged controversy over her asset disclosures involving her and her family:

• The panel has recommended a range of stricter norms for SEBI officials and board members, noting that the current system is weak and fragmented.
• Among its key suggestions are a two-year cooling-off period before ex-officials join regulated firms and the mandatory reporting of gifts above Rs 1,000.
• The panel has recommended a dedicated whistleblower channel for public complaints.
• It has suggested a public disclosure of assets by SEBI's chairperson as well as its top officials.
• It proposes a uniform policy for employees and board members.

• The panel has laid out a broader definition of 'conflict of interest'.
• It has recommended the establishment of a new ethics and compliance office within SEBI.
• The committee has suggested that all disclosures be digitally tracked.
• It believes that these steps will enhance transparency and public trust.
• The proposals will now be reviewed by the SEBI board for final approval.