SEBI panel soon to work on conflict of interest rules for board members: Report
New Delhi, March 23 (IANS) The Securities and Exchange Board of India (SEBI) is likely to constitute a high-level committee soon to work on updating framework of conflict of interest for its board members.
The panel is likely to update and relook at the framework for conflict of interest and asking members to make disclosures like movable or immovable property and other assets, according to a report in NDTV Profit, citing people close to the development.
Earlier this month, new SEBI Chairman Tuhin Kanta Pandey had said that the regulator will reveal any conflict of interests of its board members.
The capital markets regulator will come out with a plan to disclose any conflict of interest of its board members to the public as a step to improve trust and transparency, according to him
“We need to not only create trust of all stakeholders in us (SEBI) but we also need to maintain that trust. To that extent, we need to be more transparent, including on various other measures such as conflict of interest of the (SEBI) board and so on,” he said during an event in Mumbai.
“We will be coming forward with our own plan to further transparently reveal this conflict of interest to the public,” Pandey added.
Meanwhile, SEBI has proposed a change in rules that will allow startup founders to continue holding Employee Stock Option Plans (ESOPs) even after their company goes public.
This move aims to provide relief to founders of new-age technology companies who often receive ESOPs instead of cash-based salaries in the early years of their business. ESOPs help align the interests of founders with other shareholders. However, when startups raise investments, the founders’ shareholding gets diluted.
SEBI has also partnered with DigiLocker recently to help investors track their securities holdings and reduce unclaimed financial assets. This initiative aims to enhance investor protection and make access to financial holdings easier and more secure.
—IANS
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