According to the new code, one of the most significant provisions restricts WTMs from making fresh investments in equities, equity-linked instruments and equity or commodity derivatives during their tenure. Members joining SEBI with such investments must either sell them, freeze them until their term ends, or dispose of them under an approved trading plan. Existing holdings cannot be used to exercise voting rights while serving on the Board, it said.

The code also introduces extensive disclosure requirements. WTMs must declare details of family members, relatives, professional interests over the past three years, immovable properties, financial investments, liabilities, rental agreements, and significant financial transactions. These disclosures must be made at the time of joining, annually, and after leaving office. Any major changes, including property transactions or changes in family details, must be reported promptly. Certain information on immovable properties will also be made available to the public to improve transparency, the new SEBI code says.

Part-time members have comparatively lighter disclosure obligations. Ex-officio government representatives are exempt from some requirements if they already submit similar disclosures to their parent organisations. Other PTMs must disclose equity investments, professional interests, and annual transactions in securities, it said.

Conflict-of-interest safeguards, governance standards

To prevent undue influence, the code prohibits WTMs and their family members from accepting gifts from anyone having official dealings with SEBI. While small tokens such as bouquets, diaries, or souvenirs are permitted, gifts exceeding Rs 50,000 from personal friends on social occasions must be reported to SEBI’s Office of Ethics and Compliance (OEC).

The code also strengthens conflict-of-interest safeguards. Board members must recuse themselves from discussions, decisions, and access to information involving entities where they or their close family members have significant financial, professional, or personal interests. Recusal may also be required if a member has close personal associations or substantial investments that could affect impartiality. A digital system will record all disclosures and recusals, while an annual summary of recusals will be published in SEBI’s Annual Report, it said.

Members of the public can also raise concerns about potential conflicts of interest by submitting evidence to the OEC. After reviewing the complaint and obtaining the member’s response, SEBI will determine whether recusal is necessary, the code says.

The code further requires WTMs to disclose negotiations for future employment while still in office. After leaving SEBI, whole-time members will be barred for two years from appearing before or against SEBI on behalf of any person in regulatory, adjudication, settlement, or approval matters, according to the code.

By introducing stricter ethical standards, tighter investment restrictions, mandatory disclosures, and a structured conflict-management framework, SEBI aims to reinforce the integrity and independence of its leadership. The new code marks a significant step toward enhancing public trust and ensuring that India’s securities regulator operates with the highest standards of governance.