SEBI adopts stricter code of conduct for board members after conflict-of-interest allegations
The Securities and Exchange Board of India (SEBI) has voluntarily adopted a comprehensive code of conduct for its board members, aimed at strengthening transparency, accountability and public confidence in the country’s capital markets. Approved at the board meeting on June 19, 2026, the new code introduces stricter rules on investments, disclosures, conflicts of interest, gifts and post-retirement employment.
The code applies to both whole-time members (WTMs), including the chairperson, and part-time members (PTMs). It seeks to ensure that board members perform their duties fairly, independently and without personal or financial interests influencing regulatory decisions.
The code further requires WTMs to disclose negotiations for future employment while still in office. After leaving SEBI, whole-time members will be barred for two years from appearing before or against SEBI on behalf of any person in regulatory, adjudication, settlement, or approval matters, according to the code.
The regulator had formed an expert committee in March 2025 after former SEBI chief Madhabi Puri Buch faced allegations from now-defunct US-based short seller Hindenburg Research of conflicts of interest. In August 2024, Hindenburg had alleged that Buch and her husband, Dhaval Buch, had hidden stakes in obscure offshore funds based in Bermuda and Mauritius linked to the Adani Group and were allegedly used in a money siphoning scandal. The Adani Group and the Buchs had denied the allegations.
SEBI stated that the new code is part of its ongoing efforts to enhance governance standards and maintain the integrity of the securities market.
