Archive · 13 Nov 2025
SEBI Committee Proposes Overhaul of Conflict of Interest Rules
Imagine SEBI, the police of India's stock market, needs to make sure its own people are super honest and don't have secret deals that could make them unfair.
A special team looked at SEBI's rules and said they need a big upgrade.
They want everyone at SEBI, especially the top bosses, to tell everyone about their money and what they own, like a big public report card.
They also want to make it clear who is considered 'family' for these rules, making it much broader than before.
If SEBI leaders have to step away from a decision because it might be unfair, they want to announce that publicly.
A new, safe way for people to report problems anonymously is also suggested.
And if someone leaves SEBI, they can't immediately work for companies they used to oversee for two years.
These changes are meant to make SEBI more trustworthy and fair for everyone.
SEBI's High-Level Committee proposed reforms to its conflict of interest and disclosure framework.
Recommendations include multi-tier disclosures of assets, liabilities, and relationships for all staff, with public disclosure for top officials.
Investment restrictions and an expanded definition of 'family' are proposed for board members and employees.
A robust, secure, and anonymous whistleblower system and a formal recusal publication process are recommended.
Stricter post-retirement restrictions are suggested, barring former members/employees from appearing before SEBI for two years.
- Who
- A High-Level Committee (HLC) set up by the Securities and Exchange Board of India (SEBI).
- What
- Suggested significant reforms to SEBI's conflict of interest and disclosure framework, including multi-tier disclosures, investment restrictions, and a whistleblower system.
- When
- The committee was set up in March 2025 and has submitted its recommendations.
- Where
- Securities and Exchange Board of India (SEBI) headquarters.
- Why
- To enhance SEBI's transparency, credibility, independence, and integrity, bringing its practices in line with global best practices and safeguarding investor interests.
Current SEBI Framework
Proposed SEBI Framework
Disclosure Requirements
Current SEBI Framework
Current disclosure requirements for assets, liabilities, and relationships are not comprehensive or publicly available.
Proposed SEBI Framework
Proposes multi-tier disclosures (appointment, annual, event-based, exit) for all board members and employees, with public disclosure for top brass (Chairman, WTMs, CGMs and above).
Definition of Family
Current SEBI Framework
The current definition of 'family' in the SEBI Code 2008 is limited to spouse and dependent children under 18.
Proposed SEBI Framework
Recommends an expanded definition of 'family' to include spouse, dependent children, legal dependents, and any blood or marital relatives substantially dependent on the member/employee.
Recusal Transparency
Current SEBI Framework
Recusals by SEBI leadership and employees are not currently made public.
Proposed SEBI Framework
Recommends publishing a summary of recusals by the Chairman, WTMs/PTMs, and CGMs and above in SEBI's Annual Report.
Whistleblower System
Current SEBI Framework
No dedicated or robust whistleblower system is in place.
Proposed SEBI Framework
Proposes establishing a secure, confidential, and anonymous whistleblower system with strong safeguards against retaliation.
Post-Retirement Restrictions
Current SEBI Framework
No specific cooling-off period or restrictions are mentioned for former SEBI officials.
Proposed SEBI Framework
Suggests a two-year period during which former members or employees cannot appear before or against SEBI in any matter.
- Committee Name
- High-Level Committee (HLC)
- Chairperson
- Pratyush Sinha (former Chief Vigilance Commissioner)
- Purpose
- Review conflicts of interest and disclosure framework of SEBI board members and employees.
- Key Recommendation Areas
- Multi-tier disclosures, investment restrictions, recusal processes, whistleblower system, post-retirement restrictions.
- Insider Definition
- Chairman and Whole-Time Members (WTMs) to be considered 'insiders' under SEBI's insider trading norms.
- New Ethics Infrastructure
- Proposed establishment of an Office of Ethics and Compliance (OEC) and an Oversight Committee on Ethics and Compliance (OCEC).
- Technology Integration
- Suggestion to use AI and data analytics for conflict of interest detection.
Sources
Sebi Expert Group Submits Report On Conflict Of Interest
SEBI reform push: Panel suggests mandatory asset disclosure, conflict-of-interest checks for Chairman
Conflict-of-interest: Panel suggests stricter disclosure, ethics oversight, and cooling-off norms for SEBI officials
SEBI plans wide-ranging reforms to woo foreign investors, chief says
SEBI Panel Recommends Overhaul of Ethics and Conflict-of-Interest Framework
Sebi panel for sweeping reforms in disclosure, conflict of interest rules for chairman, senior officers
Sebi’s top brass may be considered ‘insider’: Panel
Sebi panel seeks overhaul of conflict-of-interest, disclosure norms
