SEBI’s High-Level Committee Examines New Conflict Framework For Board

A high-level committee (HLC) formed by the Securities and Exchange Board of India (SEBI) is discussing stricter conflict-of-interest rules for its board members.

Proposals under consideration include third-party monitoring of conflict disclosures, investment restrictions for board members and their families, and the possibility of making such declarations public. The committee has met twice so far and plans at least two more meetings before finalising recommendations, which are expected to be submitted to SEBI in July. The panel is currently consulting a wide range of stakeholders, including stock exchanges, clearing corporations, depositories, legal experts, and former SEBI chairpersons. The objective is to build a comprehensive framework to address and manage potential conflicts of interest at the board level.