REGSTREET LAW ADVISORS SUMIT AGRAWAL
A high-level committee led by former CVC Mr. Pratyush Sinha has proposed sweeping reforms to enhance SEBI’s governance and ethical framework pertaining to conflict of interest and disclosures of members and officials of SEBI. The recommendations include mandatory pre-appointment conflict-of-interest disclosures for top officials, annual public declarations of assets and liabilities, creation of an Office of Ethics and Compliance with independent oversight, and classifying SEBI’s Chairperson and Whole-Time Members as “insiders” under the insider trading framework, aligning with global best practices.
In this regard, Mr. SUMIT AGRAWAL, Senior Partner, REGSTREET LAW ADVISORS, and former SEBI Officer, has been quoted in:
(a) the Mint article titled “Sebi panel proposes sweeping reforms on conflicts of interest, disclosures and recusals.”
(b) The Economic Times article titled “Sebi to tighten conflict of interest and insider trading norms for top officials,”
Mr. Agrawal is of the opinion that these recommendations are essential to sustain public trust in an institution that guards market integrity.
He further remarked “Conflict of interest norms are the moral spine of any regulator. Regulators must hold themselves to standards even higher than those they enforce on listed companies and intermediaries.”
At REGSTREET LAW ADVISORS, we had a detailed discussion and analysis of the report with the view that if implemented, the committee’s recommendations could substantially strengthen SEBI’s transparency, independence, and ethical governance framework. The report offers several commendable suggestions. Yet, it is important to recognize that disclosure alone is not a panacea, true credibility arises from robust processes and a demonstrable separation of legislative, quasi-judicial, and investigative or inspection functions. While the committee’s mandate focused on addressing individual conflicts, it is often institutional conflicts and departmental biases that most undermine public confidence. Addressing these systemic issues would be a welcome and progressive next step.
Read these articles at: Mint: https://lnkd.in/d29SPKET
Economic Times: https://lnkd.in/dcaCzq-X
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