SEBI adopts new code of conduct for board members

📌 Summary:

• The Securities and Exchange Board of India (SEBI) has voluntarily adopted a comprehensive code of conduct for its board members to strengthen transparency, accountability and public confidence in capital markets
• Approved at the June 19, 2026 board meeting; applies to whole-time members (WTMs, including the chairperson) and part-time members (PTMs)
• Context: the expert committee was formed in March 2025 after former SEBI chief Madhabi Puri Buch faced conflict-of-interest allegations from now-defunct US short-seller Hindenburg Research (August 2024); allegations were denied
• Investment curbs: WTMs barred from fresh investments in equities, equity-linked instruments and equity/commodity derivatives during tenure; existing holdings must be sold, frozen, or managed via an approved trading plan; cannot exercise voting rights on such holdings
• Disclosures: WTMs must declare family, relatives, professional interests (past 3 years), immovable property, investments, liabilities and major transactions — at joining, annually and on leaving; some property details made public
• Post-employment: WTMs must disclose future-employment negotiations while in office; barred for 2 years after leaving from appearing before/against SEBI on behalf of any person
• Gifts: WTMs and family barred from accepting gifts from those with official dealings with SEBI (small tokens exempt)

🎯 UPSC Relevance: GS2/GS3 — regulatory integrity, conflict of interest, corporate governance, and accountability of statutory regulators.

📝 Prelims Facts:

• Code approved at SEBI board meeting on June 19, 2026
• Applies to whole-time members (WTMs) and part-time members (PTMs)
• 2-year post-retirement bar on appearing before/against SEBI

🔑 Key Term: Conflict of interest — a situation where a regulator's personal or financial interests could improperly influence official decisions, undermining impartial regulation.