India markets regulator to review provisions for members’ conflict of interest

The Securities and Exchange Board of India (SEBI) will set up a committee to review provisions related to its members’ conflict of interest, the markets regulator said on Monday in its first meeting under new chairman, Tuhin Kanta Pandey.

SEBI’s previous chief, Madhabi Puri Buch, had come under attack towards the end of her term after the now-shuttered Hindenburg Research alleged conflict of interest in investigations into the Adani group because of her previous investments, which both Buch and the Adani group denied.

Separately, the regulator also approved doubling the assets under management (AUM) threshold to 500 billion rupees ($5.84 billion) for foreign portfolio investors who need to provide granular disclosures, including the names of all stakeholders.

SEBI has, in January, proposed to raise this limit due to an increase in trading volumes and liquidity.

SEBI added that foreign investors who have 50% or more of their AUM in a single corporate group will continue to give detailed disclosure of ownership.