The Securities and Exchange Board of India (SEBI) will establish a committee to review provisions related to conflicts of interest among its members, as announced in its first meeting under new chairman Tuhin Kanta Pandey.
SEBI's former chief, Madhabi Puri Buch, faced scrutiny toward the end of her tenure following allegations from Hindenburg Research regarding conflicts in investigations into the Adani group, which both Buch and the Adani group denied.
During a press conference, Pandey stated that SEBI was reassessing conflict of interest rules, highlighting that the regulations, which were implemented 17 years ago, require updating. He emphasized the need for greater transparency from the regulator's members.
Additionally, SEBI approved an increase of the assets under management (AUM) threshold to 500 billion rupees ($5.84 billion) for foreign portfolio investors, who must now provide detailed disclosures, including the names of all stakeholders.
In January, SEBI proposed this increase in response to a rise in trading volumes and liquidity. The regulator specified that foreign investors holding 50% or more of their AUM in a single corporate group must continue providing detailed ownership disclosures.
Moreover, SEBI tightened regulations concerning key positions at market institutions, such as stock exchanges, clearing firms, and depositories. The appointment, re-appointment, or termination of crucial roles—including compliance officer, chief risk officer, chief technology officer, and chief information security officer—at market infrastructure institutions (MIIs) will now require approval from the governing body, rather than solely from the nomination and remuneration committee.
SEBI also indicated that the governing body of MIIs may establish a minimum cooling-off period for key posts and directors before they can join a competing MII.