Will Reveal Conflicts of Interest: Sebi Chairman Shakes up Governance Standards
New Sebi Chairman Pledges Transparency with Conflict-of-Interest Framework
Tuhin Kanta Pandey, the newly appointed chairman of the Securities and Exchange Board of India (Sebi), vowed to enhance transparency by introducing a framework requiring Sebi board members to publicly disclose conflicts of interest. Speaking at his first public event, Moneycontrol’s Global Wealth Summit 2025, Pandey, who assumed office on March 1, emphasized that this step is crucial for building and maintaining trust in the regulator.
The announcement follows last year’s controversy involving Pandey’s predecessor, Madhabi Puri Buch, who faced allegations from U.S.-based short-seller Hindenburg Research. The claims, based on whistleblower documents, suggested potential conflicts tied to Buch’s investments in an offshore fund linked to the Adani Group, which Sebi was probing. Sebi had defended Buch, stating she made necessary disclosures and recused herself when required. Pandey underscored the need for greater openness, saying, “Trust and transparency extend to Sebi itself. We will reveal conflicts of interest to the public.”
Amid concerns over foreign institutional investor (FII) outflows, Pandey assured efforts to streamline regulations for foreign portfolio investors (FPIs) and alternative investment funds (AIFs). “We are committed to creating a conducive environment for foreign capital,” he said, highlighting India’s appeal as a long-term investment destination. He noted that both domestic and foreign capital are vital for sustaining growth, especially in infrastructure, innovation, and entrepreneurship.
Pandey also addressed global economic challenges, such as geoeconomic fragmentation and tariff uncertainties, stressing India’s resilience. He cited strong fundamentals—sustained growth, low deficits, healthy bank balance sheets, and robust forex reserves—as pillars supporting the economy. Additionally, he promised to review outdated regulations to ensure Sebi remains agile and effective. With these initiatives, Pandey aims to reinforce Sebi’s credibility while fostering a thriving capital market ecosystem.
