SEBI Set to Overhaul Ethics and Conflict-of-Interest Framework

A committee led by Pratyush Sinha recommends a legally binding ethics framework for SEBI, aligning it with international standards. The proposed revamp introduces an independent ethics office, digital registry, and comprehensive disclosure mechanisms to enhance transparency and governance.

In a significant move towards international regulatory alignment, the Securities and Exchange Board of India (SEBI) is poised for a comprehensive overhaul of its ethics and conflict-of-interest framework. A high-level committee chaired by Pratyush Sinha, former Chief Vigilance Commissioner, has recommended fundamental changes that promise enhanced transparency and accountability.

The committee's report, released on Wednesday, suggests replacing the current voluntary code of conduct with a robust, legally enforceable framework. This proposed shift aims to bring SEBI's governance practices in line with global standards, enhancing public trust and the regulator's integrity.

Central to the recommendations is the establishment of an independent Office of Ethics and Compliance, a digital registry for conflict-tracking, and consistent definitions across SEBI's framework. The proposed reforms are expected to reinforce SEBI's reputation while promoting a culture of accountability within India's capital markets.

(With inputs from agencies.)