Archive · 15 Nov 2025
SEBI Board to Review Conflict of Interest and Ethics Report on Dec 17
Imagine SEBI is like the main referee for India's stock market.
They want to make sure their own referees are super honest and don't have any secret deals.
A special team looked at how SEBI works and suggested some new rules.
They think the head referee and other top officials should tell everyone what they own, like their money and property.
This is to stop them from making unfair decisions because of their own stuff.
The team also wants a way to keep track of when officials can't be involved in a decision because it might be a conflict.
They also suggested a waiting period before people who leave SEBI can take other jobs, so they don't use secrets they learned.
The plan is to make SEBI more trustworthy for everyone playing in the stock market.
SEBI's board will meet on December 17 to discuss a high-level committee report on ethics and conflict of interest.
The report recommends public disclosure of assets and liabilities for SEBI's chairperson and whole-time members.
Key proposals include a two-year cooling-off period for former officials and the creation of an Office of Ethics and Compliance.
A digital repository to track recusals and enhanced whistleblower mechanisms are also suggested.
The reforms aim to bolster governance, transparency, and ethical conduct within the securities regulator.
- Who
- The Board of the Securities and Exchange Board of India (SEBI) and Chairman Tuhin Kanta Pandey
- What
- Will review a high-level panel's report recommending reforms on conflict of interest, disclosures, and ethics for its members and officials.
- When
- December 17
- Where
- SEBI
- Why
- To strengthen transparency, governance, and ethical conduct within the market regulator.
Current SEBI Practices
High-Level Committee Recommendations
Disclosure of Assets
Current SEBI Practices
Current disclosure requirements for senior officials are not explicitly public.
High-Level Committee Recommendations
Mandates public disclosure of assets and liabilities for the Sebi chairperson and whole-time members (WTMs).
Recusals and Transparency
Current SEBI Practices
No clear records of recusals by the chairperson were reported.
High-Level Committee Recommendations
Proposes a digital repository to track disclosures and publish annual summaries of recusals.
Handling of Pre-existing Holdings
Current SEBI Practices
Details on specific procedures for handling existing investments by top brass are not detailed.
High-Level Committee Recommendations
Offers four options: liquidation, freezing, sale under a trading plan, or sale with prior approval. New investments are capped at 25% of portfolios, restricted to regulated pooled vehicles.
Ethics Oversight
Current SEBI Practices
Gaps in ethics oversight have been identified.
High-Level Committee Recommendations
Suggests establishing an Office of Ethics and Compliance (OEC) headed by an executive director, supervised by an independent committee.
Gifts and Whistleblowing
Current SEBI Practices
Rules on gifts and whistleblowing mechanisms are not specified.
High-Level Committee Recommendations
Bans gifts to the chairperson and WTMs from those with official dealings and strengthens the whistleblower mechanism for independent handling of complaints.
Post-Retirement Restrictions
Current SEBI Practices
Restrictions on post-retirement activities for former officials are not clearly defined.
High-Level Committee Recommendations
Recommends a two-year cooling-off period for former members and senior officials, requiring disclosure of ongoing employment negotiations.
Definition of 'Insider'
Current SEBI Practices
The chairman and WTMs are not explicitly categorized as 'insiders'.
High-Level Committee Recommendations
Categorizes the Sebi chairperson and WTMs as 'insiders' under Insider Trading Regulations.
- Regulator
- Securities and Exchange Board of India (SEBI)
- Meeting Date
- December 17
- Report Subject
- Conflict of Interest, Disclosures, and Ethics for SEBI Members and Officials
- Report Submitted
- Wednesday
- Key Recommendations
- Public disclosure of assets/liabilities for chairman & WTMs, digital repository for recusals, 2-year cooling-off period for former officials, creation of Office of Ethics and Compliance, ban on gifts, strengthened whistleblower system, expanded definition of 'family'.
- New Investment Restrictions
- Capped at 25% of portfolios, restricted to regulated pooled vehicles.
Sources
SEBI proposes easing lock-in rules for shareholders amid booming IPO market: Report
Sebi begins revamp of settlement rules, targeting inflated penalties and rigid terms
Sebi Eases IPO Lock-In Rules
SEBI board on Dec 17 to consider high panel report on disclosures, conflict of interest
Sebi board to take up panel report on disclosures, conflict of interest next month, says chief Tuhin Kanta Pandey
