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

Banking & Finance

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.


      - 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.

Main Point :-   (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.
About SEBI

Chairperson: Tuhin Kanta Pandey
Headquarter : Mumbai
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