SEBI Imposes Strict Rules on Employees

The Securities and Exchange Board of India (SEBI) has introduced revised regulations to strengthen governance, transparency, and ethical standards among its employees. The new rules impose stricter conflict of interest norms, including limits on investments by employees and their family members. SEBI also mandated a two-year cooling-off period for employees after leaving the organization, during which they cannot represent any party before or against the regulator. The move follows a review triggered by allegations against former Chairperson Madhabi Puri Buch.

Under the updated framework, employees and their families are restricted from making fresh investments in certain instruments such as equity shares, derivatives, and convertible securities without approval. However, investments through regulated pooled vehicles, InvITs, and REITs are permitted within limits. Employees must disclose significant financial transactions, gifts exceeding ₹50,000, and any potential conflicts of interest. SEBI is also setting up a digital system to ensure timely disclosures and compliance monitoring.