SEBI board postpones decision on disclosures by senior officials on privacy concerns

SEBI

The Securities and Exchange Board of India (SEBI) has deferred a proposal that would require senior officials to disclose their financial assets and liabilities, as the regulator weighs transparency goals against employee privacy concerns.

Speaking at a press conference after SEBI’s board meeting on December 17, SEBI Chairperson Tuhin Kanta Pandey said the proposal stems from recommendations made by a high-level committee on conflict of interest. While the board broadly agrees on strengthening internal processes, it has decided that the matter requires further deliberation.

“Relating to the high-level committee on conflict of interest, the board deliberated on this matter and acknowledged that a comprehensive review has been carried out,” Pandey said. “We need to have a detailed discussion on the recommendations in the ensuing meeting, keeping in view public and media comments and certain concerns expressed by employees.”

As a result, the proposal was not taken up for approval and will be revisited in a subsequent meeting. One key area of consensus, according to Pandey, is the implementation of an automated framework to improve how disclosures are collected and monitored within the organisation. “There is broad agreement on implementing an automated framework to improve the process,” Pandey said, adding that “public disclosure of certain employees’ assets and liabilities has been suggested, which raises privacy concerns.”

However, the suggestion that certain categories of employees should make public disclosures of their assets and liabilities has raised privacy-related issues. He clarified that SEBI already collects and monitors information on assets and liabilities internally, and that such disclosures are made to authorised officials as mandated. The discussion, he said, is largely around whether and how these disclosures should be made public.

Pandey also highlighted the complexity involved in asset disclosures. “There is immovable, there is movable, and there is something which is changing on a day-to-day basis, like liquid assets,” he said. “One has to take a view on how we would match the concerns that are there with the requirement of greater transparency in terms of our personal details.”

The board’s decision to defer the proposal underscores the regulator’s cautious approach as it seeks to refine its conflict-of-interest framework without compromising employee privacy.

The proposal will now be taken up again in a future board meeting, as SEBI looks to fine-tune its conflict-of-interest framework.

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