Sebi panel to review members’ conflict of interest

Months after the capital markets regulator’s former head Madhabi Puri Buch was accused of holding back on investigations against Adani group because of conflict of interest, the Securities and Exchange Board of India (SEBI) on Monday decided to set up a committee to review provisions for its members to disclose conflict of interest.

SEBI chairman Tuhin Kanta Pandey, who chaired his maiden meeting, said it has been decided to set up a high-level committee to conduct a detailed review of conflict of interest and disclosure norms related to property, investments and liabilities of board members and officials.

“The panel will comprise eminent persons and experts with relevant backgrounds and experience in constitutional or statutory or regulatory bodies, government/ public sector, private sector and academia,” Pandey said, while adding that the names of members of the committee will be announced in due course.

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.

However, 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”.

Reviving the practice of holding press conferences after board meetings, Pandey said the last time the disclosure norms were made was in 2008 and a review was necessary to build trust in the institution.

He disclosed that the objective of the high-level committee is to comprehensively review and make recommendations for enhancing the existing framework for managing conflict of interest, disclosures and related matters towards ensuring the high standard of transparency, accountability and ethical conduct of members and officials of the board.