‘Disclosure norms for employees and board need updating,’ says SEBI chair Pandey

In an exclusive interview with CNBC-TV18, Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey underscored the need to update the regulator’s conflict of interest and disclosure rules, both for employees and the board.

“We think we have to update both the ESRs and the Board Disclosure rules,” Pandey said, referring to the Employee Service Regulations (ESRs), which currently do not require public disclosures when SEBI employees recuse themselves due to conflicts.

“There is no public disclosure of conflict of interest, no disclosure of properties and facilities by SEBI employees….We need to decide to what extent public disclosures need to be made,” he said.

Pandey said SEBI should be “more proactive on the disclosure front” and pointed out that a dedicated committee would examine global best practices to guide this overhaul. “We need to have a database of who is recused for what,” he added.

Also read: SEBI to form high-level committee to review conflicts of interest and disclosures

Pandey acknowledged that transparency is key to maintaining trust in India’s capital markets. It’s important not just for market integrity but also to provide “comfort to those within SEBI on how they should conduct themselves in cases,” he added.