# SEBI tightens ethics rules for employees Former employees face a two-year cooling-off period - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-13 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/b3f0f89b-54c1-4784-a273-ec1ccb91fc4d ## SEBI'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. ## Investment 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. ## Conflict 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. ## New 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. ## Future 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. ## Investment 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. ## Sources covering this story - https://economictimes.indiatimes.com/markets/stocks/news/sebi-tightens-ethics-rules-for-current-former-employees/articleshow/132362647.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._