As was promised by the chairman of Securities & Exchange Board of India, CB Bhave, at the December 4 board meeting, the regulatory body has put up its code on conflict of interest for its members. These are meant to ensure that the members of the Sebi conducts in a manner that does not compromise its ability to accomplish its mandate or undermine the public confidence in the ability of its members.
Under the new code, the members of the board and the chairman will have to take take all steps necessary to ensure that any conflict of interests to which he may be subject to does not affect any decision of the Board. Under this code, all members will have to disclose any interests that may conflict with their duties. Additionally, all whole time members, which includes the chairman, shall not hold any other office of profit, and shall not engage in any other professional activity, which entails receipt of salary or professional fees.
Members will have to disclose their holding of shares and holdings of shares of his family within 15 days of the assumption of office. ?A member shall disclose his holding of shares and holdings of shares of his family at the end of each financial year within 15 days of the close of the financial year,? the code adds. And, the WTM will have to disclose substantial transactions by him and his family within 15 days of such transaction.
A member, who is directly or indirectly interested in any matter coming up for consideration at a Board meeting, will have to disclose the nature of his interest at such meeting. Members will not be able to take part in any deliberation or discussion of the Board with respect to such matter except to the extent of professional advice if sought by the Board. Importantly, any person, who has reasonable ground to believe that a member has an interest in a particular matter, may bring the same with material evidence to the notice of Secretary to Board. The details of the document are also posted on the website.