SEBI adopts new Code of Conduct for board members with recusal framework
The Securities and Exchange Board of India (SEBI) adopted a new Code of Conduct for members of its Board on 15 July 2026, formalising a recusal framework. It applies to whole-time members (including the chairperson) and part-time members, requiring them to step aside from matters involving personal, professional or financial conflicts (family, close associates, past associations) and restricting direct investments in stocks. The move aims to strengthen transparency and public confidence in regulatory decisions.
Key Facts & Details
7 points- 1SEBI adopted a new Code of Conduct for board members with a formal recusal framework.
- 2It applies to whole-time members (incl. chairperson) and part-time members.
- 3Members must recuse from matters involving family, close associates or past professional links.
- 4It restricts direct investments in stocks by board members.
- 5The aim is to boost transparency and public confidence in regulatory decisions.
Deep Dive
- +This follows earlier SEBI ethics rules for current and former employees (effective mid-July).
- +SEBI regulates India's securities and commodities markets.
Exam Focus
Which regulator adopted a new conflict-of-interest code of conduct for its board members in July 2026?
Related Topics
Exam Relevance & Angle
A SEBI governance reform (regulator + recusal/conflict code) is a testable markets/governance GA item.
Target Exams
Background & Context
The code addresses conflict-of-interest concerns by defining conflicted relationships and mandating withdrawal.
Test Yourself
1 / 1The new code of conduct with a recusal framework adopted in July 2026 was issued by which regulator?
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