SEBI bars board members from buying new shares and derivatives
SEBI just rolled out new rules making it much tougher for its own board members to invest in the stock market.
As of July 15, they cannot buy any new shares or derivatives.
The move is all about keeping things transparent and avoiding conflicts of interest at the top.
SEBI tightens investment and insider rules
Board members now face tighter limits on mutual funds and permitted investments: These cannot be more than 25% of the total acquisition cost of all their financial investments.
The definition of family for Whole Time Members has also been widened to include spouses, dependent children (including adopted and stepchildren), legal wards, and blood/marriage relatives substantially dependent.
Whole Time Members are officially considered insiders, so insider trading rules apply strictly to them now.
These changes come after a committee review sparked by past conflict-of-interest allegations involving the previous chairperson.