Capital market regulator Sebi on April 9 announced a six-member high-level committee to review provisions relating to conflict of interest and disclosures, including property, investments and liabilities of board member and officials, with former CVC Pratyush Sinha as chairman, along with Uday Kotak as one of the members.
The high-level committee will be chaired by former Chief Vigilance Commissioner Pratyush Sinha, while former MCA Secretary and former Chairman of IFSC Authority Injeti Srinivas has been appointed as the vice chairman.
Veteran banker and founder of Kotak Mahindra Bank, Uday Kotak has also been appointed as a member of the committee. Kotak had earlier headed Sebi's committee on corporate governance. Former Sebi whole-time member G Mahalingam, former Dy Comptroller and Auditor General Sarit Jafa and former professor of IIM Bangalore Prof R Narayanaswamy will be the other members of the high-level committee.
The panel will comprehensively review and make recommendations for enhancing the existing framework to manage conflicts of interest, disclosures and related matters to ensure high standards of transparency, accountability, and ethical conduct of board members and Sebi officials.
Last month, Sebi's board has approved the proposal for the constitution of the committee.
The Terms of Reference for the high-level committee has also been defined, and it ]will review the existing policies and frameworks governing the conflict of interest, disclosures & related matters, and identify any gaps or ambiguities.
The committee will also recommend a robust framework for preventing, mitigating and managing conflict of interest including a recusal policy, disclosure requirements covering public disclosures, provisions pertaining to restriction on investments, maintenance of digital records and framework for monitoring, etc.
The committee is also expected to suggest a mechanism for members of the public to raise concerns pertaining to conflict of interest, disclosures including process to examine complaints or any other related matter as considered appropriate.
The high-level committee is expected to submit its recommendations within three months from the date of constitution, and the recommendations will be placed before the Sebi board for approval.
Sebi's existing code of conflict of interest for members of board was drafted in 2008, and since then, it has not been majorly revised. The need was felt for the revision of the code following the controversy around the Hindenburg report’s allegation against former Sebi Chairperson Madhabi Puri Buch.
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