SEBI Conflict-of-Interest Panel: Disclosure and Trading Curbs
Why in the news
A high-level SEBI committee, formed in March 2025, recommended a stricter disclosure and conflict-of-interest regime after gaps in the existing framework and allegations against former chairperson Madhabi Puri Buch.
Key facts
- Panel: Pratyush Sinha (chair), Injeti Srinivas (vice-chair); SEBI Chairperson then: Tuhin Kanta Pandey.
- Enforceable CoI regulations for board members to replace the voluntary code; amend SEBI (Employees’ Service) Regulations, 2001.
| Area | Proposal |
|---|---|
| Who | Chairperson, WTMs, Chief General Manager and above; part-time members partly exempt |
| Disclosures | Assets, liabilities, trading, family, actual, potential and perceived conflicts |
| When | On appointment, yearly, on key events, at exit |
| Family | Spouse, dependent children, wards, dependent relatives |
| Trading | Chairperson and WTMs are insiders; existing equity liquidated, frozen or sold under pre-approved plans; new money in pooled schemes, max 25% |
Oversight
- Mandatory recusal, with an annual public summary.
- OEC and OCEC to be set up; ban on gifts linked to official dealings.
- AI-based monitoring, anonymous whistle-blower channel, ethics training.
Exam angle
- Goals: transparency, accountability, public confidence; committee head: Pratyush Sinha.