SEBI tightens ethics rules for employees
Former employees face a two-year cooling-off period
1SEBI's new ethics rules
The Securities and Exchange Board of India (SEBI) has introduced a two-year cooling-off period for former employees. During this period, former employees cannot represent clients before the regulator. The regulation covers investigations, settlement proceedings, and fundraising applications.
2Investment restrictions for family members
SEBI has extended investment restrictions to employees' family members. Spouses and dependent children are subject to these restrictions, with limited exemptions for employee stock option plans and pooled investment vehicles.
3Conflict of interest allegations
SEBI's former chairperson Madhabi Puri Buch faced conflict of interest allegations from Hindenburg Research. Buch denied the allegations and was cleared by India's anti-corruption body.
4New code of conduct
SEBI's new rules include a stricter code of conduct for senior officials. Officials must recuse themselves from matters involving family members and close associates.
5Future employment negotiations
SEBI employees must disclose negotiations for future employment within 30 days. They are also required to liquidate or freeze equity holdings before joining the regulator.
6Investment limits
SEBI has capped employees' exposure to products offered by a single fund manager. This limit cannot exceed 25% of the employee's total investments.
Original article: Economic Times — SEBI çalışanları için etik kuralları sıkılaştırdı