In a move that will raise moral standard of its members, the capital market regulator, Securities and Exchange Board of India has come out with code of conducts for its members of the governing board.
The code is aimed at 'avoiding conflict of interest for the members of the board and ensure that members conduct their duties in the manner that does not compromise their ability to accomplish its mandate or undermine the public confidence in the ability of members to discharge their responsibilities'.
The code was adopted by the board in its last meeting held on 4th December. Sebi has made the code applicable to the chairman also.
Code include provisions like disclosing holdings of shares by member of the board or that of their family members, non acceptance of gifts from intermediaries that is regulated entities, avoiding conflict of interests that can affect decisions of the board and members shall disclose their interests that may conflict with their duties.
Sebi has also said that 'no member shall hear or decide any matter where he has a conflict of interest'.
This code is raising moral bar for the members or even whole time members of the board. The Sebi Chairman C B Bhave has first followed certain high level of moral standard before assuming the charge as Chairman of the board.
Prior to becoming the chairman of Sebi, he was managing director of National Securities Depository against which sebi has issued an order in IPO scam in 2006. Bhave has disassociated himself when board was discussing the matter related to NSDL.
The code also outlines what a member should do while dealing with any of the intermediaries in his personal capacities and also disclose their professional relationship in past five years with any market intermediaries. Whole time members are barred from holding any office of profit.
