Sebi forms committee to review conflict-of-interest disclosure rules

The Securities and Exchange Board of India (Sebi) has announced the formation of a high-level committee to review disclosure norms for conflicts of interest involving its board members and officials. The decision, taken during Sebi’s first meeting under new chairman Tuhin Kanta Pandey, comes months after the regulator faced scrutiny over allegations that its former chairperson, Madhabi Puri Buch, withheld investigations into the Adani Group due to undisclosed holdings.

Committee composition and mandate

The panel will comprise experts from constitutional, statutory, and regulatory bodies, as well as representatives from the public and private sectors and academia. Their names will be announced shortly.

The committee’s mandate is to assess and recommend updates to Sebi’s conflict-of-interest framework—last revised in 2008—to enhance transparency and accountability. Pandey emphasized that the review is not an admission of past lapses but a proactive step to strengthen institutional trust.

Background: Adani controversy and allegations

The move follows accusations by Hindenburg Research that Buch and her husband held undisclosed investments in offshore entities linked to the Adani Group, raising concerns over Sebi’s delayed investigation into fraud allegations against the conglomerate. Both Buch and Adani denied the claims.

Earlier, the Supreme Court dismissed calls for a court-monitored probe, directing Sebi to complete its investigations. However, the regulator has yet to disclose its findings.

Next steps

The committee, operating independently with Sebi’s secretarial support, will submit recommendations within three months for board consideration. Pandey stressed the importance of clear recusal mechanisms and ethical conduct to uphold Sebi’s credibility as India’s market regulator.