The Securities and Exchange Board of India (SEBI), at its board meeting on Monday, decided to constitute a High-Level Committee to undertake a comprehensive review of conflicts of interest and disclosures by its board members.
The release after the board meeting, the first by newly appointed chairperson Tuhin Kanta Pandey, said the HLC will “undertake a comprehensive review of the provisions relating to conflict of interest, disclosures pertaining to property, investments, liabilities and related matters in respect of Members and officials of the Board.”
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The HLC is expected to submit its recommendations to the board within three months from the date of its constitution, the statement said.
The objective of the HLC was to make recommendations to enhance the existing framework for managing conflicts of interest, disclosures and related matters towards ensuring high standards of transparency, accountability and ethical conduct of the board members.
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The HLC will comprise eminent persons and experts with relevant background experience in constitutional, statutory and regulatory bodies, as well as in the government, public sector, private sector and academia.
Former SEBI chairperson Madhabi Puri Buch’s tenure was marred by allegations of conflict of interest in the Adani Group probe, which were levelled against her by the now-disbanded short-seller hedge fund Hindenburg Research. The fund also claimed that she favoured REIT regulations in India and simplified them to benefit private equity firm Blackstone, where her husband, Dhaval Buch, had been an advisor.
In a media briefing after the board meeting, Pandey acknowledged that there were existing issues in the current disclosure norms.
