New Code Of Conduct For SEBI Board Members With Investment & Disclosure Rules

The Securities and Exchange Board of India (SEBI) has adopted a new Code of Conduct for its Board Members, replacing the principles-based framework introduced in 2008 with detailed rules on investments, disclosures, conflicts of interest and post-retirement conduct.

The new code, adopted by SEBI’s Board in June 2026, places restrictions on Whole-Time Members, including the Chairperson, from making fresh investments in listed equities, convertible securities, and equity and commodity derivatives during their tenure. Investments through mutual funds, REITs and InvITs will continue to be allowed. The framework expands disclosure requirements related to financial assets, liabilities, property holdings, professional interests, and family-related investments. It also introduces standards for recusal from matters involving conflicts of interest and requires annual reporting of recusals.

The code establishes an ethics oversight mechanism and allows public complaints related to conflicts of interest, with cases to be reviewed by SEBI’s Office of Ethics and Compliance. It also sets restrictions on post-retirement appearances before SEBI in certain matters.