Transparency Overhaul: SEBI's Conflict of Interest Reforms

The Securities and Exchange Board of India (SEBI) has approved significant reforms to enhance transparency and accountability. Key measures include mandatory disclosures of assets and liabilities by top officials and the establishment of a digital framework for managing conflicts of interest. This move follows allegations of past conflicts within the board.

The Securities and Exchange Board of India (SEBI) has taken a major step towards transparency by implementing recommendations from a high-level committee on conflict of interest. The board, chaired by former Chief Vigilance Commissioner Pratyush Sinha, has mandated that SEBI's chairman and senior officers publicly disclose their assets and liabilities.

Significantly, the board has agreed to include the chairman and Whole Time Members (WTMs) under the definition of 'insider,' broadening the scope of regulatory scrutiny. The board also emphasized setting up a digital system for conflict management and whistleblower reports, as well as training programs to promote ethical conduct.

This initiative follows allegations of past improprieties, notably involving former SEBI Chairperson Madhabi Puri Buch, who was accused of delaying investigations into the Adani group due to personal interests. With these reforms, SEBI aims to reinforce trust and accountability within its ranks.

(With inputs from agencies.)