MUMBAI: Sebi on Monday said it’s setting up a high-level committee of eminent people, independent of the regulatory body, to review provisions related to governance, conflict of interest and disclosures about holding of assets by its board members.
The move comes close on the heels of allegations of conflict of interest against former Sebi chief Madhabi Puri Buch – which she had denied.
Sebi chairman Tuhin Kanta Pandey, however, denied any connection between the allegations against Puri Buch and the markets regulator’s decision to set up the committee.
“The objective of the HLC (high-level committee) is to 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,” a Sebi release said. “The HLC is expected to submit its recommendations within three months from the date of constitution, which shall be placed before the board for consideration.”
The committee will comprise eminent persons and experts with relevant background and experience in constitutional, statutory, regulatory bodies, public sector, private sector and academia. The names of the committee members will be announced in due course, the release said.
One of the terms of reference of the committee is to suggest ways and rules for making public information when a member recuses from an issue Sebi is dealing with, Pandey said. The approach of the rules for such issues would deal with how much information to make public without hurting the personal liberties and rights of the person, he said.
