Sebi approves tighter conflict code, easier FPI settlement plan
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims + Mains·
Why in news
Sebi proposed stricter conflict-of-interest rules for its board and employees following concerns raised by former chairperson Madhabi Puri Buch.
Background
Sebi proposed requiring top officials to publicly disclose assets and liabilities and implementing a digital recusal process. The regulator also approved a plan for Foreign Portfolio Investors (FPIs) to settle trades on a net basis to reduce costs.
Facts for Prelims
- BodySebi: Securities and Exchange Board of India
- FactFPIs: Allowed to settle trades on a net basis to reduce transaction costs
- FactDigital recusal process: Proposed for Sebi board members and employees
- FactSocial impact funds: Approved measures to increase retail participation
For Mains
Q. Discuss the importance of robust conflict-of-interest frameworks in strengthening the integrity of capital markets and regulatory bodies in India.
Dimensions to cover in your answer
- Institutional integrity: Mitigating personal interest conflicts to maintain public trust in market regulators
- Market efficiency: Reducing transaction costs for FPIs through net settlement mechanisms
- Transparency norms: Mandatory asset disclosure as a tool for accountability in statutory bodies
Keywords: Conflict of Interest · Capital Market Integrity · Net Settlement · Regulatory Oversight · Transparency · FPI
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.