New Delhi, July 29, 2025 — The Securities and Exchange Board of India (SEBI) has adequate internal procedures to manage conflicts of interest among its officials and board members, the government informed Parliament on Tuesday.
Responding to a query in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary stated that SEBI’s framework includes a disclosure system, recusal provisions, and a code of conduct to ensure ethical governance and transparency. These mechanisms are designed to prevent any compromise in regulatory integrity and maintain public trust in the capital markets.
To further strengthen this framework, SEBI has constituted a high-level committee tasked with reviewing and recommending enhancements to its conflict-of-interest policies. The panel, formed during the first board meeting under new Chairperson Tuhin Kanta Pandey, will examine existing rules related to property, investments, and liabilities of board members. It comprises experts from constitutional bodies, government, private sector, and academia, and is expected to submit its recommendations within three months.
The committee’s mandate includes:
- Updating disclosure norms for board members and senior officials
- Reviewing recusal protocols and ethical safeguards
- Enhancing transparency through public disclosure of potential conflicts
- Evaluating the feasibility of blind trusts for board members’ investments
The move follows recent scrutiny over regulatory independence and aims to bolster investor confidence. While addressing concerns about market stability, Chaudhary emphasized that employee-related matters are handled through SEBI’s established governance systems, and no leadership changes are currently under consideration.
