SEBI to form high-level panel to review conflict-of-interest norms for all staff, including chief

In its first board meeting under new chairperson Tuhin Kanta Pandey, SEBI on Monday approved the formation of a high-level committee (HLC) to examine and revamp its rules on conflict of interest and disclosure obligations for board members and senior officials.

The overhaul will apply across the hierarchy—including SEBI’s own chairperson. According to the regulator, the committee will conduct a detailed review of regulations governing property, investments, and liabilities of board members. 

It aims to fortify SEBI’s framework for ethical conduct, transparency, and accountability.

“Market regulator Securities and Exchange Board of India (SEBI) today deliberated and approved the major overhaul of the code of conflicts of interest for board members of SEBI including the chairman,” stated the regulator.

SEBI will announce the members of this expert committee in due course. The panel will include individuals with experience across constitutional, regulatory, statutory, academic, and both public and private sector institutions. It is expected to submit recommendations within three months of its formation, following which SEBI’s board will evaluate the proposals.

The move follows a March 7 statement by Pandey at a Mumbai event, where he had signalled the regulator’s intent to enhance transparency by disclosing conflicts involving board members. 

Separately, the board also approved a proposal to raise the disclosure threshold for foreign portfolio investors (FPIs) from ₹25,000 crore to ₹50,000 crore in equity assets under management.

"Cash equity market trading volumes have more than doubled between FY 2022-23 (when the limits were set) and the current FY 2024-25. In light of this, the Board approved a proposal to increase the applicable threshold from the present Rs 25,000 crore to Rs 50,000 crore,” SEBI noted in a release. FPIs crossing this mark will now have to comply with additional disclosure norms as per the circular issued on August 24, 2023.

The disclosure framework is designed to prevent regulatory loopholes—especially under Press Note 3, the 2020 directive aimed at curbing foreign investments from countries sharing a land border with India.