The High-Level Committee (HLC) formed by to examine conflict of interest and disclosure norms for its members and officials has submitted its report to SEBI Chairman Tuhin Kanta Pandey on Monday.
The six-member panel, chaired by former Chief Vigilance Commissioner Pratyush Sinha, was constituted by SEBI’s board in March this year to undertake a comprehensive review of existing internal policies.
Other members included Injeti Srinivas, former Secretary, Ministry of Corporate Affairs, Uday Kotak, Founder and Director of Kotak Mahindra Bank, G. Mahalingam, former SEBI whole-time member, Sarit Jafa, former Deputy CAG, and Prof. R. Narayanaswamy, former IIM Bangalore professor.
The committee’s mandate included reviewing SEBI’s current framework governing conflict of interest, property and investment disclosures, and recusal procedures, and identifying any gaps or ambiguities.
It was asked to suggest a robust mechanism for preventing, mitigating, and managing potential conflicts, including maintaining digital records and establishing a process for the public to raise complaints related to conflict of interest or disclosure lapses.
The committee is likely to recommend stricter norms around personal financial disclosures of SEBI officials and board members, limits or restrictions on direct equity participation, and clear guidelines on recusal in cases of potential conflicts. It may also propose real-time disclosure tracking and periodic audits to ensure compliance, in line with global best practices.
The report’s recommendations could be placed before SEBI’s board for consideration in December.