By Nishit Navin and Ira Dugal
MUMBAI/BENGALURU (Reuters) -The Securities and Exchange Board of India will set up a committee to review provisions related to its members’ conflict of interest, the markets regulator said on Monday in its first meeting under new chairman, Tuhin Kanta Pandey.
SEBI’s previous chief, Madhabi Puri Buch, had come under attack towards the end of her term after the now-shuttered Hindenburg Research alleged conflict of interest in investigations into the Adani group because of her previous investments, which both Buch and the Adani group denied.
Pandey, in a press conference, said SEBI was reviewing conflict of interest rules as the regulations that came into effect 17 years ago needed an update, adding that there is reason for higher disclosures from members of the market regulator.
Separately, the regulator also approved doubling the assets under management (AUM) threshold to 500 billion rupees ($5.84 billion) for foreign portfolio investors who need to provide granular disclosures, including the names of all stakeholders.
SEBI has in January proposed to raise this limit due to an increase in trading volumes and liquidity.
The regulator added that foreign investors who have 50% or more of their AUM in a single corporate group will continue to give detailed disclosure of ownership.
The regulator also tightened rules related to some top jobs at market institutions such as stock markets, clearing firms and depositories.
SEBI said appointment, re-appointment, or termination of key posts like compliance officer, chief risk officer, chief technology officer and chief information security officer at market infrastructure institutions (MII) will require approval of the governing body on the institutions, which was so far done with nomination and remuneration committee’s nod.
It added that the governing body of MIIs may also prescribe a minimum cooling-off period for key posts and directors before joining a competing MII.
($1 = 85.5700 Indian rupees)
(Reporting by Nishit Navin and Ira Dugal; Editing by Savio D’Souza and Maju Samuel)
