In a significant move aimed at enhancing governance and transparency, the Securities and Exchange Board of India (Sebi) has established a six-member committee to scrutinize critical issues surrounding conflict of interest and disclosure policies. This initiative comes as part of Sebi’s ongoing efforts to fortify its regulatory framework, ensuring that board members and officials adhere to the highest ethical standards. The committee will be led by Pratyush Sinha, a former chief vigilance commissioner known for his extensive experience in public service.

Experienced Team of Experts

The committee boasts a distinguished lineup of members, each bringing a wealth of knowledge and expertise:

• Injeti Srinivas: Vice-chairman, former secretary in the corporate affairs ministry.
• Uday Kotak: Non-executive director at Kotak Mahindra Bank.
• G Mahalingam: Former executive director at the Reserve Bank of India and a past whole-time member of Sebi.
• Sarit Jafa: Former deputy comptroller & auditor general (CAG).
• R Narayanaswamy: Former professor at IIM Bangalore.

This assembly was approved during a Sebi board meeting on March 24, marking the first under the leadership of Tuhin Kanta Pandey, who succeeded Madhabi Puri Buch amid allegations of conflict of interest related to the Adani Group and the Hindenburg report.

Focus Areas of the Committee

The primary objectives of this high-level committee include:

• Reviewing Existing Policies: The committee will assess current regulations concerning conflict of interest, disclosures, and related matters, identifying any deficiencies or unclear areas.
• Developing a Recusal Framework: A robust recusal policy will be part of the recommendations, alongside guidelines for public disclosures and investment restrictions.
• Monitoring and Record-Keeping: The committee will emphasize the importance of maintaining digital records and implementing effective monitoring systems.

Furthermore, the committee aims to create a transparent process that allows the public to voice concerns related to potential conflicts of interest and disclosures.

Timeline for Recommendations

The committee is expected to deliver its findings within three months of its formation. The recommendations will be presented to the Sebi board for further deliberation, underscoring the regulator’s commitment to enhancing its operational integrity.

Background on Leadership

Pratyush Sinha is no stranger to high-stakes inquiries, having led various committees in the past, including investigations into delays in major infrastructure projects. His vast experience positions him well to steer this committee towards effective governance solutions.

Injeti Srinivas, the vice-chairman, has a rich history with FIPB and has played a pivotal role in shaping FDI policy and industrial reforms in India, further adding to the committee’s expertise.

This initiative not only reflects Sebi’s proactive approach to governance but also reinforces its dedication to maintaining investor confidence in India’s financial markets.

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