SEBI Chief Tuhin Kanta Pandey To Constitute Committee For Updating Framework

SEBI Chief Tuhin Kanta Pandey To Constitute Committee For Updating Framework

Works towards improving trust and transparency among the public

The Securities and Exchange Board of India (SEBI) plans to constitute a high-level committee to update the framework of conflict of interest for its board members.

The panel will update the structure and direct members on disclosures of movable or immovable property and other assets.

Recently, the new SEBI Chairman Tuhin Kanta Pandey stated that the regulator would reveal any dispute among its board to improve trust and transparency among the public.

Speaking at an event in Mumbai, Pandey asserted, “We need to not only create trust of all stakeholders in us but also maintain that trust. We must be more transparent on various other measures such as conflicts of interest of the board. We will come forward with a plan to transparently reveal it to the public.”

Meanwhile, the market regulator has proposed a change in rules to allow startup founders to continue holding Employee Stock Option Plans (ESOPs) even after their company goes public.

It will provide relief to founders of new-age technology companies who often receive ESOPs instead of cash-based salaries in the early years of their business.

ESOPs help align the interests of founders with other shareholders. However, when startups raise investments, the founders' shareholding gets diluted.

In another initiative, SEBI has partnered with DigiLocker to help investors track their securities holdings and reduce unclaimed financial assets. It will enhance investor protection and enable financial holdings to become easier and safer.