Sebi notifies conflict-of-interest norm for staff; extends investment rules to family members

Sebi has notified rules for its employees, introducing a comprehensive conflict-of-interest framework, tighter investment restrictions, enhanced disclosure norms and a two-year cooling-off period for staff after they leave the regulator. The amendments aim to strengthen governance, transparency and ethical standards.

Sebi notified the revised norms for its board members and senior officials following a review of the existing framework. This review was initiated after former Sebi Chairperson Madhabi Puri Buch faced conflict-of-interest allegations by Hindenburg Research. Buch denied the allegations and was subsequently cleared by the country's anti-corruption body. The revised framework, approved by the Sebi board last month, includes the voluntary adoption of a stricter code of conduct for senior officials. 

Under the new rules, employees leaving Sebi due to retirement, resignation, or other reasons may not appear before or against the regulator on behalf of any person in any matter—including quasi-judicial proceedings, adjudication, settlement or approval matters—for two years from their date of relieving. 

-PTI