New Delhi: The Securities and Exchange Board of India (SEBI) has adequate internal mechanisms for addressing issues relating to conflict of interest, which include a disclosure framework and provisions for recusal, the Parliament was informed on Tuesday.
Replying to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said that to further strengthen this framework, the SEBI has set up a high-level committee to review and make recommendations for enhancing the existing framework for managing conflicts of interest, disclosures and other related matters concerning its members and officials.
On a question whether any assessment has been conducted to determine the impact of recent allegations on broader stock market stability and whether there are any circumstances under which the Ministry would recommend leadership changes to restore investor confidence in the SEBI, he said: “Employee-related matters are addressed through established internal procedures and governance mechanisms within the SEBI.”
In March, the markets regulator decided to form a high-level committee to review provisions related to conflict of interest, disclosures, and related matters concerning its board members and officials, including the Chairperson.
The approval came during the SEBI’s first board meeting under its new Chairperson, Tuhin Kanta Pandey.
The committee will conduct a comprehensive review of existing regulations on conflict of interest, covering property, investments, and liabilities of board members, according to a statement, adding that it will consist of experts with experience in constitutional, statutory, and regulatory bodies, as well as government, public and private sectors, and academia.
The primary objective of the panel is to strengthen the SEBI’s framework for managing conflicts of interest, ensuring transparency, accountability, and ethical conduct. The committee will submit its recommendations within three months from its formation, after which the board will consider them.
The panel will update and relook at the framework for conflict of interest and ask members to make disclosures, like movable or immovable property and other assets.
The new SEBI Chairperson had said that the regulator will reveal any conflict of interest of its board members. The capital markets regulator will come out with a plan to disclose any conflict of interest of its board members to the public as a step to improve trust and transparency.
(IANS)
