In a move to enhance transparency and investor trust, a High-Level Committee (HLC) formed by the Securities and Exchange Board of India (SEBI) has proposed tighter norms around conflict of interest and disclosure practices among SEBI officials.

Panel Composition:
Chaired by former Chief Vigilance Commissioner Pratyush Sinha, the six-member team included Injeti Srinivas, Uday Kotak, and R. Narayanaswamy, among others.

Key Proposals:

• Comprehensive disclosure of personal financial interests by SEBI officials and board members.

• Restrictions on direct equity participation in regulated entities.

• Clear recusal mechanisms for conflict cases.

• Real-time tracking and periodic audits to ensure compliance.

• A public complaint mechanism for conflict-related lapses.

Finacare Insight:
These measures align with global regulatory standards, strengthening SEBI’s credibility as India’s market watchdog. Improved governance not only boosts investor confidence but also enhances the transparency of capital markets — a long-term positive for institutional participation.

Investor Takeaway:
Enhanced governance norms could further improve market integrity, benefitting long-term retail investors and mutual fund participants.