Allegations of conflicts of interest raised concerns over Sebi’s independence, prompting urgent review of internal checks and disclosure norms
A high-level panel found Sebi’s conflict-of-interest rules outdated, with weaker norms for board members than for employees
Members were not treated as “insiders” and faced fewer restrictions, despite wielding greater influence in regulatory decisions
Sebi accepted key recommendations, including stricter norms for top officials, but diluted others citing privacy and practical concerns
Limits on public disclosure of assets and exclusion of unlisted securities raise questions about the effectiveness of reforms
Making rules enforceable and enhancing transparency will be crucial to restoring trust in India’s capital market regulation