Context:
Securities and Exchange Board of India (SEBI) plans to discuss an expert panel report on conflict of interest regulations for its senior officials at the next board meeting on December 17, 2025. The move follows governance scrutiny after conflict-of-interest allegations against former SEBI chairperson Madhabi Puri Buch, which involved claims of undisclosed offshore investments (refuted by Buch and her husband).
Why the Review Now?
1. Governance Concerns
- Public attention intensified after conflict-of-interest allegations against the former chairperson.
- Even though Buch and her husband categorically denied the charges, the episode exposed regulatory gaps in disclosures and oversight.
2. Need for Enhanced Transparency
- SEBI wants to align internal rules with global best practices.
- Strengthening conflict-of-interest norms is vital to reinforce trust in India’s market regulator.
What the Expert Panel Report Covers
SEBI’s expert committee has submitted recommendations including:
1. Stricter Disclosure Requirements
- Mandatory, periodic declarations of financial interests for senior officials.
- Expanded scope to cover family members, offshore structures, and beneficial ownership.
2. Cooling-Off & Recusal Rules
- Guidelines on restricting officials from handling cases where there could be personal or financial links.
- Possible cooling-off periods before joining private sector entities.
3. Higher Monitoring & Internal Audits
- Strengthening of internal vigilance and compliance systems.
- Real-time tracking of potential conflict situations.
4. Clarity on Permissible Investments
- Defining which assets or structures (e.g., offshore funds, trusts, startups, algorithmic trading firms) are allowed or prohibited.
