Synopsis
On March 24, SEBI announced the formation of a high-level committee to review conflict of interest regulations for its board members. This initiative aims to enhance transparency and accountability within the organization, ensuring ethical standards are upheld.Key Takeaways
- SEBI is forming a high-level committee.
- The committee will review conflict of interest regulations.
- It aims to promote transparency and accountability.
- Recommendations are expected in three months.
- Disclosure of board members' assets will be required.
New Delhi, March 24 (NationPress) The Securities and Exchange Board of India (SEBI) announced on Monday the creation of a high-level committee tasked with reviewing the rules surrounding conflict of interest, disclosures, and related concerns affecting its board members and officials, including the Chairperson.
This decision was made during SEBI's inaugural board meeting led by the new chairperson, Tuhin Kanta Pandey.
The committee is set to conduct a thorough examination of current regulations regarding conflicts of interest, focusing on the property, investments, and liabilities of board members. It will comprise experts from constitutional, statutory, and regulatory backgrounds, alongside representatives from government, public and private sectors, and academia.
SEBI stated that the names of the committee members will be disclosed in due course.
The main aim of this panel is to enhance SEBI's framework for addressing conflicts of interest, promoting transparency, accountability, and ethical conduct. Recommendations from the committee are expected within three months of its formation, after which the board will evaluate them.
The panel will reassess the framework for conflict of interest and require members to disclose assets such as movable or immovable property.
Earlier this month, the new SEBI Chairman expressed that the regulator would publicly disclose any conflict of interest among its board members. This initiative aims to build trust and enhance transparency in the capital markets.
“We must not only foster the trust of all stakeholders in us (SEBI) but also sustain that trust. To achieve this, we need to be more transparent, particularly regarding issues like conflict of interest among the SEBI board and others,” Pandey remarked during an event in Mumbai.
“We are preparing to unveil our own strategy to disclose this conflict of interest transparently to the public,” Pandey added.
