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SEBI to Form High-Level Committee for Reviewing Conflict of Interest in Senior Leadership.

Banking & Finance | Dated: 26 Mar 2025

In March 2025, Mumbai (Maharashtra)-based market regulator, Securities Exchange Board of India (SEBI) has approved the setting up of a High-Level Committee (HLC) to review provisions related to governance and revamp its rules on conflict of interest and disclosure obligations for board members and senior officials.

🎯 Key Highlights:

  • - This decision was taken during SEBI's 1st meeting under its new chairperson, Tuhin Kanta Pandey.
  • - The HLC is tasked to conduct a comprehensive review of regulations governing property, investments, and liabilities of board members.
  • - This move aims to ensure high standards of transparency, accountability, and ethical conduct of members and officials of the board.

💡 Other Important Facts:

  • (i) The Board of SEBI has eased investment restrictions for Category-II Alternative Investment Funds (AIFs), including private equity and debt funds, enabling them to invest in listed debt securities rated 'A' or below.
  • (ii) It has introduced key changes regarding the appointment of Public Interest Directors (PIDs) and the cooling-off period for key management personnel (KMP) and directors for Market Infrastructure Institutions (MIIs).
  • (iii) It has clarified that the earlier process of appointment of PIDs, which requires the approval of SEBI but not shareholders, will continue.

📚 Test Your Knowledge:

Which regulatory body has recently decided to form a High-Level Committee (HLC) to review conflict of interest in senior leadership?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairperson: Tuhin Kanta Pandey
  • Headquarter : Mumbai