SEBI board to review conflict of interest reforms in December 17 meeting

The Securities and Exchange Board of India (SEBI) will consider the recommendations of a high-level panel on conflict of interest and transparency at its board meeting on 17 December, Chairman Tuhin Kanta Pandey said on Friday.

The panel, which submitted its report to Pandey on 10 November, proposed a series of reforms aimed at strengthening governance, disclosure, and ethical standards for SEBI officials. Key recommendations include public disclosure of assets and liabilities by the SEBI Chairman, whole-time members, and chief general manager-rank officers; a secure and anonymous whistleblower system; a ban on expensive gifts; a two-year restriction on post-retirement assignments; and the creation of a Chief Ethics and Compliance Officer (CECO) position.

The report also suggests that applicants for chairman, member, and lateral entry positions disclose actual, potential, and perceived conflicts of interest, both financial and non-financial.

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“The board will take a final call on the recommendations made in the report,” Pandey told reporters after inaugurating the SEBI pavilion at the India International Trade Fair (IITF).

The panel offered a detailed classification of conflicts of interest, covering financial, relational, professional, duty-related, and perceived conflicts, and recommended that all SEBI board members and employees submit initial, annual, event-based, and exit disclosures of assets, liabilities, trading activity, family relationships, and other professional interests. Disclosures would be submitted to the proposed Office of Ethics and Compliance (OEC) and the Oversight Committee on Ethics and Compliance (OCEC).

The committee also called for induction and refresher training emphasizing ethical conduct and fostering a zero-tolerance culture for conflicts of interest.

The review was initiated in March following allegations against former SEBI Chairperson Madhabi Puri Buch, who was accused of withholding investigations into the Adani Group due to a potential conflict of interest—claims both Buch and the Adani Group have denied.

The committee, formally called the Committee on Conflict of Interest, Disclosures and Related Matters, was chaired by former Chief Vigilance Commissioner Pratyush Sinha, with members including Injeti Srinivas, Uday Kotak, G Mahalingam, Sarit Jafa, and R Narayanaswamy.

In its 98-page report, the panel noted that adopting these reforms would align SEBI with international best practices, strengthen its independence and integrity, and reinforce public trust in India’s capital market regulator.