Full disclosure for Sebi chief: Key to preventing next Hindenburg-like scandal

livemint.com:

the personal rebuttals from its chairperson, Madhabi Puri-Buch, and her spouse, Dhaval Buch, have sparked a political firestorm. The Opposition has linked the controversy to Parliament's abrupt adjournment on Friday, despite agendas being issued for Monday. Sebi claims Puri-Buch fulfilled all internal disclosure requirements and recused herself where necessary.

Puri-Buch, in her personal capacity, asserts that her family's finances are an open book. However, for Sebi and its chairperson to remain above suspicion, they must not only be clean but also be perceived as clean. Puri-Buch could set an example by voluntarily disclosing her family's assets.

Yet, a government statement might be the most effective way to address the controversy transparently and comprehensively. Given that the Sebi chairperson is appointed by the government following stipulated due diligence, a statement from the Department of Economic Affairs, which oversees capital markets, would reassure investors and bolster Puri-Buch’s credibility. However, the government should also consider overhauling Sebi’s disclosure norms, demanding greater transparency.

The 2016 ruling by a full bench of the Central Information Commission (CIC) found no public interest in disclosing the assets and liabilities of then-Sebi chairperson, UK Sinha. The current controversy suggests that this CIC order should be revisited. Sebi should amend its rules to require the public disclosure of asset declarations and conflict-of-interest statements for senior officials, board members, and the chairperson.