SEBI Approves Conflict-of-Interest Reforms for Officials

India's markets regulator, the Securities and Exchange Board of India, approved a series of reforms on Monday aimed at strengthening conflict-of-interest guidelines for its top officials while easing operational rules for foreign portfolio investors and alternative investment funds. The decisions, announced after a board meeting in Mumbai, address longstanding concerns raised by past allegations and seek to enhance market efficiency amid ongoing global volatility.

The most significant changes target conflicts of interest, building on recommendations from a high-level committee formed in March 2025. The panel was established shortly after Tuhin Kanta Pandey assumed the role of SEBI chairman, following the end of Madhabi Puri Buch's term in early 2025. Buch had faced accusations from Hindenburg Research, a U.S.-based firm, of undisclosed family investments linked to entities associated with the Adani Group, which was under SEBI investigation at the time. Both Buch and the Adani Group denied the claims.

Under the approved framework, the chairman, whole-time members, executive directors, and chief general managers must now adhere to stricter investment restrictions. They are...