Sebi sharpens conflict rules, eases FPI settlements

The Securities and Exchange Board of India (Sebi) has approved a series of measures on conflict of interest, disclosure and recusal norms for its officials.

- Apoorva Ajith

The Sebi board also allowed foreign portfolio investors to settle their trades on a net basis and moved to revamp its fit and proper norms.

The Sebi chairperson and whole-time members will be subject to the same restrictions on investments and trading as other employees, the regulator said in a statement. Their investments in unlisted companies and other commercial ventures have to be liquidated or frozen during their tenures.

"We are trying to be as transparent as possible," Sebi chairman Tuhin Kanta Pandey said at a press conference. "There is a bit of a difference today (in disclosures) between the employees and the chairman and whole-time members. This will be the same going forward."

Details of immovable property of the top officials including the chairman, whole-time members, executive directors and chief general managers will now be publicly disclosed in the same manner as applicable for All India Services and Central civil services officers.

Among other approved norms is the mandate of disclosing assets, liabilities, trading activities and relationships of employees, the chairperson and whole-time members and a cap of 25% for investments managed by a single intermediary.