Sebi tightens disclosures for top officials

MUMBAI: The board of markets regulator Sebi on Monday approved some major changes to the disclosure rules governing the chairman, whole time members (WTMs) and other senior officials of the body. These changes, including public disclosure of their own assets and liabilities, and of their family members, were mostly based on the recommendations of the high-level committee (HLC) on conflict of interest of the senior officials and board members of Sebi.

The market regulator's board also approved changes to some of the rules governing foreign portfolio investors (FPIs) that would allow these investors to net out their trades in the equity cash segment of the market.

Under the new disclosure norms, the Sebi WTMs will be categorised as 'insiders', the regulator said in a release. All these officials will have uniform application of restrictions on investments and trading (in equity and equity-related instruments, other than permitted investments in mutual funds etc.) as currently applicable to employees, the release said. Also, they could invest in any pooled vehicle, provided the scheme is professionally managed by a regulated market intermediary.

The new rules also mandated that when an official joins Sebi as its chairman or a WTM, the official will have four options to choose from for existing equity investments. The official could liquidate all the investments, freeze them, sell the investments according to a trading plan or sell them without a trading plan with prior approval.

"Investments in equity and equity-related instruments in commercial ventures (including unlisted companies) must be fully liquidated or kept frozen" during the tenure of the official. "Vested options, if any, must be exercised before joining Sebi," the release said.

The HLC was formed in April 2025, soon after Tuhin Kanta Pandey, then a top bureaucrat in the finance ministry, took over as top markets regulator. A panel on the issue was necessitated after there were allegations of conflict of interest with the previous Sebi chief, which were denied by the official.



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