New SEBI Chief To Roll Out Transparency Framework For Conflict Of Interest Among Board Members

Pandey assured that SEBI is committed to enhancing its engagement with both FPIs and Alternative Investment Funds to address their concerns more effectively

Pandey also stressed the crucial role of domestic institutional investors in maintaining market stability

Source : PTI

Tuhin Kanta Pandey, the newly appointed chairman of the Securities and Exchange Board of India (SEBI), stressed the importance of transparency in addressing conflicts of interest within SEBI's board. Speaking on Friday, Pandey revealed that the regulator will soon roll out a plan to publicly disclose any conflicts of interest within its board.

"I think we need to be more transparent on various other measures, including, for example, on the conflict of interest of the board and so on. And we will be coming forward with our own plan to further transparently, you know, reveal these conflict of interest, etc, to the public. I think trust and transparency extends to SEBI itself. We need to not only create trust of all stakeholders in us, but we also need to maintain that trust," he said at the Moneycontrol Global Wealth Summit 2025, according to a PTI report.

His comments come at a pivotal moment, following legal challenges faced by his predecessor, Madhabi Puri Buch. The Bombay High Court recently granted relief to Buch, along with SEBI Whole-Time Member Ashwani Bhatia and BSE Chairman Pramod Agarwal, by staying an order from the Anti-Corruption Branch (ACB) Court that had directed the registration of an FIR against them.

The court observed that the ACB's order was passed "mechanically, without going into details" and failed to specify the roles of the individuals involved.

This legal matter stems from a complaint by journalist Sapan Srivastava, who alleged that BSE had listed Cals Refineries in 1994 without ensuring compliance with SEBI's listing regulations. The complaint also accused SEBI of not taking action against BSE or Cals Refineries, leading to significant investor losses.

Foreign Portfolio Investors

Pandey also talked about the role of Foreign Portfolio Investors (FPIs) in shaping India’s financial landscape. He assured that SEBI is committed to enhancing its engagement with both FPIs and Alternative Investment Funds (AIFs) to address their concerns more effectively.

While acknowledging that FPIs are often influenced by global events, Pandey stressed the crucial role of domestic institutional investors in maintaining market stability. He highlighted how these investors have helped fill the void left by FPIs during periods of global uncertainty and stressed that a balance of both domestic and foreign capital is essential for fostering sustainable growth in India’s capital markets.

Pandey further assured that SEBI would continue to work closely with FPIs to streamline their operations and ensure that foreign investment remains a vital component of India’s financial ecosystem. He also pointed out that reforms don’t always need to be “big bang” changes, explaining that meaningful progress can be achieved through both large and small steps. SEBI, he noted, is focused on finding the right balance of reforms to meet its objectives.