Sebi Takes a Stand Against Conflict of Interest

In a significant move to uphold transparency and accountability, the Securities and Exchange Board of India (Sebi) announced the formation of a high-level committee. This committee, comprising eminent individuals independent of Sebi, is tasked with reviewing governance provisions, conflict of interest, and asset disclosure norms for its board members.

Addressing Recent Allegations

The decision follows allegations of conflict of interest against former Sebi chief Madhabi Puri Buch, which she has denied. Sebi chairman Tuhin Kanta Pandey clarified that the committee's formation is not linked to these allegations but is a step towards enhancing ethical standards.

Committee's Mandate and Expectations

The high-level committee (HLC) is expected to submit its recommendations within three months. These recommendations will focus on improving the framework for managing conflicts of interest and ensuring the ethical conduct of board members and officials.

Composition and Future Steps

The committee will include experts from various sectors, with their names to be announced soon. One of its key tasks is to propose guidelines for public disclosure when a member recuses themselves from Sebi's deliberations, balancing transparency with personal rights.