Sebi to disclose conflict of interest in board, says Tuhin Kanta Pandey

Sebi Chairperson Tuhin Kanta Pandey's announcement marks his first major step toward enhancing transparency since taking over from Madhabi Puri Buch

In an attempt to improve transparency in the functioning of the Securities and Exchange Board of India (Sebi), the market regulator will reveal any conflict of interests of its board members, chairperson Tuhin Kanta Pandey announced at a Moneycontrol event on Friday. 

“We will be coming forward with our plan to further transparently reveal these conflicts of interest, etc. for the public,” Pandey said, clarifying that he did not specifically refer to any individual’s conflict of interest.

 

Pandey is a finance ministry veteran who took charge of Sebi last week. He made these remarks in his first public speech after taking office from Madhabi Puri Buch, the former chairperson of Sebi.

 

He also mentioned that the market regulator is “conscious of the need to create an inclusive environment for foreign capital and will engage with portfolio investors and alternative investment funds to address their difficulties and further rationalise regulation.” 

Speaking at an event in Mumbai, Pandey said, “I think trust and transparency extends to Sebi itself. We need to not only create trust of all stakeholders in us, but we also need to maintain that trust.”

 

Acknowledging the concerns surrounding heightened foreign institutional investor outflows, the Sebi chief said the market regulator is rationalising the regulations governing their operations.

 

Exuding confidence in India as a bright spot for long-term investments, the former finance ministry veteran said that to support the growth momentum, infrastructure growth, innovation, and entrepreneurship in India, “we must have both domestic and foreign capital.” He also mentioned that India, over the years, has attracted ‘global investments’ across equities, debt, and private equity spaces.

 

Pandey promised that the market regulator will be relooking at outdated and redundant regulations which do not serve any purpose currently. Commenting on India facing global headwinds, the Sebi chief said the nation needs to build its resilience and strength to sustain its growth.