A Welcome Review

Sebi kept its Conflict Code unchanged for 17 years; the new chairman deserves credit for course correction

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The new chairman of the Securities and Exchange Board of India (Sebi), Tuhin Kanta Pandey, has started his Mumbai innings on a strong footing. Among the first set of decisions taken by the regulator's board is the setting up of a high-level committee to conduct a detailed review of conflict of interest and disclosure norms related to property, investments, and liabilities of Sebi's board members and officials. The committee will be constituted independently from Sebi, with the markets regulator providing what Pandey called secretarial support. Though the Sebi chairman tried to skirt the issue at Monday's media conference, it can be assumed that the move was prompted by the controversy his predecessor faced following incessant charges of conflict of interest. Whatever be the reasons, such a review of the Sebi's Conflict Code (2008) was long overdue. It's quite laughable that the regulator, which felt the need to make numerous changes to several rules for the regulated, has kept its own code unchanged for 17 years. A course correction was