SEBI Forms High-Level Panel To Review Conflict of Interest Norms, Appoints Members

The Securities and Exchange Board of India on Wednesday announced details about a high-level committee formed for reviewing the conflict of interest and disclosure norms for its members and officials.

The disclosures would be in regards to property, liabilities and related issues.

NDTV Profit had exclusively reported last month, a day before the market regulator's board meeting on March 24, that it was mulling over the formation of a panel to review the conflict of interest and disclosure norms.

Former Chief Vigilance Commissioner Pratyush Sinha will be the chairperson of the committee, as per a release issued by SEBI.

The regulator has appointed five other members to the panel, including Uday Kotak, founder and director of Kotak Mahindra Bank; Injeti Srinivas, former secretary of Ministry of Corporate Affairs; G Mahalingam, former executive director of Reserve Bank of India; Sarit Jafa, former deputy comptroller and auditor general; and R Narayanswamy, former professor at IIM Bangalore.

"The committee shall comprehensively review and make recommendations for enhancing the existing framework for managing conflicts of interest, disclosures and related matters towards ensuring the high standards of transparency, accountability, and ethical conduct of members and officials of the Board," the SEBI release stated.

The committee is expected to submit its recommendations within three months. The suggestions will then be taken up by the SEBI board of consideration.

The responsibilities will include reviewing the existing code of conflict norms and disclosure norms such that any gaps are identified. Thereafter, a framework would be suggested that would include a recusal policy and norms for public disclosures, and other provisions for investment restrictions and maintaining digital records.

A mechanism for the general public to flag conflict-of-interest issues will also be developed, and a process for investigating these concerns will also be recommended.

On March 7, newly appointed SEBI Chairperson Tuhin Kanta Pandey mentioned while speaking at an event in Mumbai that the regulator will reveal conflict of interests, if any, of its board members.