SEBI forms 6-member high-level committee to review conflict of interest provisions for officials

New Delhi: Markets regulator SEBI on Wednesday announced the formation of a six-member high-level committee, chaired by former chief vigilance commissioner Pratyush Sinha, to review provisions for its officials to disclose any conflict of interest.

The committee has been tasked with examining the existing policies and frameworks to ensure high standards of transparency, accountability, and ethical conduct within the SEBI.

This comes months after the capital markets regulator's former head Madhabi Puri Buch was accused of holding back on investigations against the Adani group because of a conflict of interest.

In a statement on Wednesday, SEBI said that former MCA Secretary and former Chairman of IFSC Authority Injeti Srinivas has been named as the vice chairman, SEBI said in a statement.

Other members are: Uday Kotak, founder and director of Kotak Mahindra Bank; G Mahalingam, former Executive Director of RBI and former Whole-Time Member of SEBI; Sarit Jafa, former Deputy Comptroller and Auditor General, and R Narayanaswamy, former professor at IIM Bangalore.

SEBI said that the high-level committee will "comprehensively review and make recommendations for enhancing the existing framework for managing conflicts of interest, disclosures and related matters towards ensuring the high standards of transparency, accountability, and ethical conduct of members and officials of the Board".

It will identify gaps or ambiguities and recommend an enhanced framework to prevent, mitigate, and manage conflicts of interest. This will include policies on recusal, disclosure requirements (including public disclosures), investment restrictions, and digital record maintenance.

Additionally, the committee will propose a mechanism for the public to raise concerns about conflicts of interest and disclosures, along with a process for examining such complaints.

The high-level committee is expected to submit its recommendations within three months, which will then be presented to SEBI's board for consideration.

SEBI Chairman Tuhin Kanta Pandey, who succeeded Buch, had announced the establishment of the High-Level Committee during his first board meeting on March 24.

Buch, who demitted office at the end of February, had come under attack last year from now-shuttered Hindenburg Research which alleged that she and her husband held "hidden" holdings in Bermuda and Mauritius entities also drawn upon by the older brother of Adani group founder Gautam Adani, which possibly held the agency back from investigating fraud charges against the powerful conglomerate.

Both Buch and the Adani group had denied all allegations. Buch and her husband had stated that they "strongly deny the baseless allegations and insinuations made in the report".