In his first public address since taking office, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey announced plans to implement a comprehensive framework requiring SEBI board members to publicly disclose potential conflicts of interest, signalling a new era of transparency at India's capital markets regulator.
"We need to be more transparent on various measures, including conflicts of interest at the board level," Pandey stated during his inaugural public appearance at Moneycontrol's Global Wealth Summit 2025. "We will be coming forward with our own plan to transparently reveal these conflicts to the public."
Pandey, who assumed the SEBI chairmanship on March 1, emphasized that such transparency initiatives are fundamental to building and maintaining stakeholder trust in the regulatory body. "Trust and transparency extends to SEBI itself. We need to not only create trust of all stakeholders in us, but we also need to maintain that trust," he remarked.
FII Regulation Reforms
Addressing concerns over foreign institutional investor (FII) outflows, Pandey revealed that SEBI is actively working to streamline regulations governing their operations in India.
"We at SEBI are conscious about the need to create a conducive environment to attract foreign capital," he stated. "We will be happy to engage with FPI and AIF industry participants to address their difficulties and further rationalize regulations to promote ease of operation."
The SEBI chairman highlighted India's position as an attractive destination for long-term investments despite global economic challenges. "As we face global headwinds in terms of geoeconomic fragmentation, tariff issues and elevated uncertainties, we need to build upon our resilience and strength to sustain our growth," Pandey noted.
According to the chairman, both domestic and foreign capital are essential to maintain India's growth momentum. He acknowledged the importance of long-term foreign investments across equities, debt, and private equity in supporting infrastructure development, innovation, and entrepreneurship in the country.
Context of Transparency Push
Pandey's emphasis on transparency comes in the wake of controversy surrounding his predecessor, Madhabi Puri Buch, who faced allegations from US-based short seller Hindenburg Research last year. The allegations, based on whistleblower documents, raised questions about potential conflicts of interest related to Buch's personal investments in an offshore fund where an Adani Group affiliate was reportedly a co-investor.
SEBI had previously stated that Buch made "relevant disclosures" and recused herself when necessary, and that allegations against the Adani Group were properly investigated.
The new chairman's transparency initiative appears designed to address such concerns and strengthen public confidence in SEBI's regulatory oversight as India's capital markets continue to evolve in an increasingly complex global financial landscape.
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Pandey promises conflict of interest disclosures, hints at streamlined regulations for foreign investors

SEBI Chief Unveils Board Transparency Framework

Pandey promises conflict of interest disclosures, hints at streamlined regulations for foreign investors

March 7, 2025 | 14:46 IST