Sebi's trust test

New norms aim to curb conflicts of interest, but full transparency still remains the missing piece

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THE SECURITIES AND Exchange Board of India's (Sebi) decision to implement most of the recommendations of the high-level committee (HLC) on conflicts of interest marks a clear improvement overits 2008 framework. It signals a long-overdue recognition that the credibility of a market regulator rests not just on enforcement, but on the integrity it is seen to uphold. Yet, an obvious question remains: Has Sebi gone far enough? The push for reform is rooted in recent controversy. Allegations of conflict of interest involving former Chairperson Madhabi Puri Buch-flagged by Hindenburg Research-brought uncomfortable scrutiny to the regulator's internal safeguards. Regardless of the merits of those claims, they exposed a perception gap that Sebi could ill afford. The HLC, set up in March 2025, was therefore as much about restoring institutional credibility as it was about tightening compliance norms.