Sebi Forms High-Level Committee To Look Into Matters Related To Conflict Of Interest

Market regulator Securities Exchange Board of India (Sebi) said that it is forming a high-level committee (HLC) to review provisions related to conflict of interest, disclosures and other necessary obligations for officials.

“The HLC 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,” Sebi said.

The market regulator added that the committee will be chaired by Pratyush Sinha, a retired IAS officer and a former Chief Vigilance Commissioner (CVC). The committee is expected to look into forming provisions related to conflict of interest including matters concerning property, investments, and liabilities.

Notably other major appointments to the committee include Injeti Srinivas the ex-chairman of the IFSCA (Gift City regulator). Srinivas is set to serve as the vice chairman of the committee. Srinivas has also served as the former secretary of the Ministry of Corporate Affairs.

Other members of the committee include Kotak Mahindra Bank founder, Uday Kotak and former Sebi whole-time member and RBI executive director G Mahalingam. Sarit Jafa the former deputy comptroller and auditor general and R Narayanaswamy, a former professor at IIM Bangalore, are a part of the panel as well.

The Sebi said that the panel is expected to recommend a robust framework for mitigating and managing cases of conflict of interest along with a recusal policy. Additionally, the panel has been tasked with putting in place disclosure requirements related to public disclosures and provisions to restrict investments, and maintenance of digital records, among other things.

The panel is also expected to recommend a mechanism for the public to raise concerns related to cases of conflict of interest and a process to examine such complaints. The committee is slated to submit its recommendations to the board of the market regulator within a period of three months from the date of its constitution.

Earlier in March, the Sebi announced its plans to establish the High-Level Committee to address concerns regarding instances of potential conflict of interest among Sebi board members. Sebi’s move to form such a committee comes in the backdrop of former short-seller Hindenburg Research alleging former Sebi chief Madhabi Puri Buch’s violation of conflict of interest.