Mumbai, Mar 24 (PTI) Sebi on Monday took steps towards upping people's "trust" in the capital markets regulator, with its board deciding to form a panel of external experts to review rules on managing and better-disclosing conflicts of interests for its senior leadership, including the Chairperson.

The decision to review provisions for its members to disclose conflict of interest comes months after former head Madhabi Puri Buch was accused of holding back on investigations against Adani group because of conflict of interest.

Career bureaucrat turned regulator Tuhin Kanta Pandey, who succeeded Buch to the top job earlier this month, steered the decision at the maiden board meeting chaired by him.

Underlining that he wants people to feel that things are "fine now", and the leadership has "nothing to hide", Pandey pointed to the core aspect of trust.

"... there was a certain trust that needs to be built up, you know, so to speak," Pandey told reporters, adding that the decision should not be seen as a tacit admission of wrongdoing in recent past.

Buch, who demitted office at the end of February, had come under attack last year from now-shuttered Hindenburg Research which alleged that she and her husband held "hidden" holdings in Bermuda and Mauritius entities also drawn upon by the older brother of Adani group founder Gautam Adani, which possibly held the agency back from investigating fraud charges against the powerful conglomerate.

Both Buch and the Adani group had denied all allegations.

Pandey, who revived the practice of holding press conferences after board decisions which was stopped after the Hindenburg allegations, said that it is not so that Sebi does not have provisions on conflicts of interest, and added that the panel will come out with a detailed framework to deal with the issue.

There are provisions made in 2008 and 2001 which make it possible to disclose conflicts, he said, adding that the panel will also be tasked with suggesting ways to recusal for Sebi officials, and disclose such situations to public.

"The objective of the high-level committee is to comprehensively review and make recommendations for enhancing the existing framework for managing conflict of interest, disclosures and related matters towards ensuring the high standard of transparency, accountability and ethical conduct of members and officials of the board," he added.

Pandey mentioned that the committee will be formed soon, once the members provide their consent, and emphasized that the panel will be constituted independently from Sebi, with the markets regulator providing secretarial support.

The panel will comprise eminent persons and experts with relevant backgrounds and experience in constitutional or statutory or regulatory bodies, government/ public sector, private sector and academia, Pandey said adding names of members of the committee will be announced in due course.

The Sebi board also approved a proposal to double the investment threshold for granular disclosures by foreign portfolio investors (FPIs) to Rs 50,000 crore aimed at addressing the changing market dynamics without altering the concentration criteria, which remain unchanged.

Without putting a number on the number of entities which will benefit from the move, Pandey clarified that it is not so that there are no disclosures for the FPIs.

The Sebi board also reviewed the norms for appointing specific key officials of stock exchanges and other market institutions, along with a cooling-off period before they can join a competing institution.

These measures are aimed at ensuring that MIIs (market infrastructure institutions) are staffed with qualified, independent key management personnel (KMPs) and directors while safeguarding market integrity through effective cooling-off policies.

Pandey also promised to look into the long pending NSE IPO.

"Surely, we will look into it. We will apply our minds to how is it... how to take it forward, what are the issues," he said.

When asked about the specific steps Pandey is contemplating on the employee or HR front, he said, "I think we are fine".

Buch had faced in-house employee protests against toxic work culture, which included instances of public humiliation and shouting down. PTI AA SP ANZ MR