SEBI Board Approves Conflict of Interest Code for Whole-Time Members and Officials

Securities and Exchange Board of India (SEBI) Approves Revised Code of Conduct for Conflicts of Interest

March 23, 2026

The board of SEBI has approved a revised code of conduct to govern conflicts of interest for its Whole-Time Members (WTMs) and officials. The decision comes following recommendations by a High-Level Committee (HLC) chaired by former Chief Vigilance Commissioner Pratyush Sinha.

Key Highlights

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• The revised code will introduce stricter disclosure norms, enhanced transparency, and technology-driven monitoring of conflicts.
• The code will require board members to make periodic disclosures of financial and non-financial interests, adhere to stronger recusal practices, and be subject to improved institutional oversight.
• SEBI will operationalize the broader framework through internal reforms, including amendments to the SEBI (Employees’ Service) Regulations, 2001, and a revision of the existing 2008 code on conflict of interest for board members.

Government Referral

• Certain critical provisions, including the proposal to notify a separate set of regulations governing disclosures and conflict management for board members, have been referred to the Central Government for consideration.
• The government will take the final call on these measures, given its role as the appointing authority and determiner of SEBI board terms of service.

Implementation

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• SEBI will put in place systems and processes to implement a comprehensive conflict management mechanism across the organisation.
• The proposed changes are expected to significantly tighten accountability standards for both board members and senior officials.