Synopsis
The SEBI is set to form a committee for revising conflict of interest guidelines for board members, enhancing transparency and trust in the regulatory framework. Additionally, new rules will allow startup founders to retain ESOPs post-IPO, and SEBI has partnered with DigiLocker to improve investor asset tracking and protection.Key Takeaways
- SEBI plans to form a committee on conflict of interest.
- Board members will disclose assets like property.
- New rules support startup founders retaining ESOPs post-IPO.
- SEBI aims to enhance investor trust and transparency.
- Collaboration with DigiLocker for better asset tracking.
New Delhi, March 23 (NationPress) The Securities and Exchange Board of India (SEBI) is anticipated to form a high-level committee in the near future to revise the conflict of interest framework applicable to its board members.
The committee is expected to review and enhance the guidelines regarding conflict of interest, requiring members to disclose their movable and immovable properties as well as other assets, as reported by NDTV Profit, citing sources familiar with the matter.
Earlier this month, the new SEBI Chairman Tuhin Kanta Pandey indicated that the regulator would make public any conflict of interest involving its board members.
The capital markets regulator is set to introduce a strategy to publicly disclose any conflict of interest among its board members, aiming to foster trust and transparency, according to Pandey.
“We need to not only build the trust of all stakeholders in us (SEBI) but also ensure its maintenance. In this regard, we must be more transparent, including on various measures like conflict of interest of the (SEBI) board,” he stated during an event in Mumbai.
“We will present our own plan to transparently reveal this conflict of interest to the public,” Pandey added.
In the meantime, SEBI has suggested amending rules that would permit startup founders to retain their Employee Stock Option Plans (ESOPs) even after their companies go public.
This initiative seeks to support founders of modern technology firms who frequently opt for ESOPs over cash salaries in the early stages of their ventures. ESOPs align the interests of founders with those of other shareholders. However, as startups secure investments, the shareholding of founders tends to dilute.
Recently, SEBI has also collaborated with DigiLocker to assist investors in tracking their securities holdings and minimizing unclaimed financial assets. This initiative aims to bolster investor protection while facilitating easier and more secure access to financial holdings.
