The government said on Tuesday that capital markets regulator Sebi has “adequate internal mechanisms”, including a disclosure framework and provisions for recusal, to address issues relating to conflicts of interest.
In a written reply in the Rajya Sabha, minister of state for finance Pankaj Chaudhary said the Sebi board has adopted a code on conflicts of interest for its board members and the chairperson.
This is aimed at ensuring that “the board conducts itself in a manner that does not compromise its ability to accomplish its mandate or undermine the public confidence in the ability of member(s) to discharge responsibilities”, he added.
Chaudhary was responding to questions by Congress leaders Mallikarjun Kharge and Ranjeet Ranjan on steps being taken by the government to ensure transparency and accountability in the declarations of financial assets and potential conflicts of interest by Sebi chairperson and senior officials, among others.
In September, the Congress had questioned payments to Sebi Chairperson Madhabi Puri Buch made by her former employer ICICI Bank. Buch has also faced the conflict of interest accusations over the regulator’s inquiry into Adani Group entities. Buch has refuted any wrongdoing, as has ICICI Bank.
In the reply, Chaudhary also said Sebi employees are governed by the Sebi (Employees’ Service) Regulations, 2001 that ensure transparency and accountability in declaration of financial assets and address potential conflicts of interest.
