Sebi tightens conflict safeguards with recusal framework

SEBI has introduced a stricter code of conduct requiring senior officials, including the chairperson and whole-time members, to recuse themselves from matters involving family members, close associates from the past three years, professional relationships, or material financial interests above 2 million rupees or 5 percent of total investments. The regulator will also set up an internal ethics office to handle complaints, maintain a digital record of conflicts, and publish annual recusal data in its annual report. The framework, introduced after former chairperson Madhabi Puri Buch faced conflict-of-interest allegations linked to the Adani Group, also allows the public to flag potential conflicts.