The Securities and Exchange Board of India (SEBI) on Monday decided to form a high-level committee to review provisions related to conflict of interest, disclosures, and related matters concerning its board members and officials, including the Chairperson.
The approval came during SEBI’s first board meeting under its new chairperson, Tuhin Kanta Pandey.
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The committee will conduct a comprehensive review of existing regulations on conflict of interest, covering property, investments, and liabilities of board members, according to a statement, adding that it will consist of experts with experience in constitutional, statutory, and regulatory bodies, as well as government, public and private sectors, and academia.
The markets regulator said it will announce the names of the committee members in the due course of time.
The primary objective of the panel is to strengthen SEBI’s framework for managing conflicts of interest, ensuring transparency, accountability, and ethical conduct. The committee will submit its recommendations within three months from its formation, after which the board will consider them.
The panel will update and relook at the framework for conflict of interest and ask members to make disclosures like movable or immovable property and other assets.
Earlier this month, new SEBI Chairman had said that the regulator will reveal any conflict of interests of its board members. The capital markets regulator will come out with a plan to disclose any conflict of interest of its board members to the public as a step to improve trust and transparency.
“We need to not only create trust of all stakeholders in us (SEBI) but we also need to maintain that trust. To that extent, we need to be more transparent, including on various other measures such as conflict of interest of the (SEBI) board and so on,” Pandey said during an event in Mumbai.
“We will be coming forward with our own plan to further transparently reveal this conflict of interest to the public,” Pandey added.
