Trust needed to be built, says Sebi's Tuhin Kanta Pandey, proposing panel on conflict of interest for regulator

The board of the Securities and Exchange Board of India (SEBI) has decided to set up a high-level committee to review conflict of interest and disclosures made by members and officials of the board of the capital market regulator.

This assumes significance as allegations related to conflict of interest and disclosure lapses were made by Hindenburg against former Sebi Chairperson Madhabi Puri Buch.

"Trust is needed to be built," said chairman Tuhin Kanta Pandey while addressing the media on Monday.

"People inside or outside organisation need to know that things are fine... if you don't have a framework, how do you know what needs to be disclosed, how it needs to be disclosed... also where the complaints should be raised etc," added Pandey.

"The board... has decided to constitute a High-Level Committee (HLC) to undertake all comprehensive review of the provisions relating to conflict of interest, disclosures pertaining to property, investment, liabilities etc and related matters in respect of Members and Officials of the Board," stated a release by Sebi.

"The HLC shall comprise of eminent persons and experts with relevant background and experience in constitutional / statutory / regulatory bodies, government / public sector, private sector and academia," it added.

The names of the members of the HLC will be announced soon, the regulator said.

Read More: Sebi's role is maintaining the integrity of markets, says Tuhin Kanta Pandey

"The objective of the HLC is to comprehensively review and make recommendations for enhancing the existing framework for managing conflicts of interest, disclosures and related matters towards ensuring the high standards of transparency, accountability, and ethical conduct of Members and Officials of the Board. The HLC is expected to submit its recommendations within three months from the date of constitution, which shall be placed before the Board for consideration," said Sebi.