SEBI to improve transparency by revealing Board’s conflicts of interests

Newly appointed SEBI chairperson Tuhin Kanta Pandey on Friday said the markets regulator plans to improve its transparency by revealing any conflicts of interest within its board members, as a way to build trust.

This gains importance as his predecessor Madhabi Puri Buch had come under attack towards the end of her term after the now-shuttered Hindenburg Research, as the Opposition Congress party alleged conflicts of interest in the regulator’s investigations into the Adani group because of her past investments, among others.

Speaking at Moneycontrol Global Wealth Summit, in his first address since becoming the Chairperson, Pandey said: “We will be coming forward with our own plan to further transparently reveal these conflicts of interest, etc. for the public.”

“Maintaining trust and transparency is paramount to instill confidence in investors. Regulatory bodies and market participants need to uphold the highest standards of governance, transparency… maintaining trust and transparency extends to SEBI as well,” he said.

Inclusive environment

The new SEBI boss said that the regulator is conscious of the need to create an inclusive environment for foreign capital and will engage with portfolio investors and alternative investment funds to address their difficulties and further rationalise regulations.

Pandey voiced the need for India to build resilience to sustain its speedy growth of around 6-6.5 per cent as estimated by IMF compared to that of emerging markets at 4.2 per cent in 2025. To sustain the growth momentum at this pace, we need support from both domestic and foreign capital, he further added.

Four Ts

Reiterating the regulator’s focus on the four Ts, trust, transparency, teamwork and technology, he highlighted the importance of teamwork within SEBI as well as with market participants. “Teamwork is more than what is inside, (SEBI) but it is also SEBI plus others,” he noted.

“I am looking forward to engage with all stakeholders to discuss what more measures need to be taken to encourage voluntary compliance,” he said.

The regulator won’t focus on maximum regulation but on optimum regulation, Pandey said. Ease of doing business at all points —entry, transaction, and exit — is necessary, he added.