Sebi brass opposes public disclosure of financial details

Sebi Senior Management Opposes Proposed Asset Disclosure Rule

The senior management at the Securities and Exchange Board of India (Sebi) is pushing back against a proposed disclosure rule that requires them to publicly state their assets and liabilities, citing privacy concerns and potential speculation.

Background

A panel led by former chief vigilance commissioner, Pratyush Sinha, had recommended regulatory officials at the rank of chief general manager and above make their assets and liabilities public to enhance transparency and accountability within the capital-markets watchdog.

Concerns Raised

• More than 100 officers have raised concerns with Sebi's HR department about the risks associated with such public disclosures.
• Concerns include loss of privacy, unnecessary speculation, and unwanted attention, including from their relatives.
• Officers see no reason to make their financial information public, especially when it's already shared internally.

International Comparison

Sebi's proposed rule differs from the Financial Conduct Authority in the UK, which keeps board members' disclosures confidential but publicly shares broad information about their financial interests and holdings.

Sebi's Stance

Sebi didn't respond to ET's email query, but sources indicate that the board is expected to discuss the recommendations of the Sinha panel on December 17.

Current Disclosure Norms

• Sebi's executive board members must internally disclose any interests that may create conflicts.
• However, they are not required to disclose their assets and liabilities, which are kept confidential.

Key Dates

The Sinha committee was formed in March to review provisions around conflicts of interest and disclosure norms.

The exercise gained urgency after Madhabi Puri Buch faced conflict-of-interest allegations.