Sebi notifies conflict-of-interest norm for employees; extends investment rules to family members
Market regulator Sebi has introduced stricter conflict-of-interest rules for its employees, including a two-year cooling-off period after leaving the organization. The new policy also extends investment restrictions to family members to ensure greater transparency and ethical standards.
Why it matters
These reforms aim to restore institutional credibility following high-profile allegations of misconduct involving senior leadership.
Markets regulator Sebi has notified rules for its employees, introducing a comprehensive conflict-of-interest framework, tighter investment restrictions, enhanced disclosure norms and a two-year cooling-off period for employees after they leave the regulator.
The amendments are aimed at strengthening governance, transparency and ethical standards for Sebi employees.
Sebi notified revised conflict-of-interest norms for its board members and senior officials, following a review of the existing framework.
The review was initiated after former Sebi Chairperson Madhabi Puri Buch faced conflict-of-interest allegations by the now-defunct Hindenburg Research. Ms. Buch had denied the allegations and was later cleared by the country's anti-corruption body.
The revised framework, approved by Sebi's board last month, includes the voluntary adoption of a stricter code of conduct for senior officials of the regulator.
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