Sebi to take action on officials divulging confidential information to "outsiders"
SEBI) has sent a grim reminder to its officials that they could face «appropriate action» for divulging confidential information to «outsiders», including former colleagues. Such sharing of information could be construed as a «breach of secrecy», said an internal circular issued by the capital market regulator last week.
It's unclear what provoked the communique, but it comes at a time the Supreme Court (SC) hearing on the Adani-Hindenburg matter is underway and the regulator is nearing the deadline for completing the probe on allegations of stock price manipulation in the Adani group companies. Any violation, says the circular, would be «viewed seriously» and could invite action as per the employees' service regulations of the organisation.
When contacted, N Hariharan, chief general manager, Communications Division, SEBI, said, 'Vide Office Circular dated July 13, 2023, SEBI employees were advised to maintain confidentiality of information during official interaction with outsiders including ex-SEBI officials. The same is in line with SEBI (Employees' Service) Regulations, 2001 and SEBI Code of Conduct for employees.
As a good practice, a reiteration of applicable norms helps in increasing awareness of expectations from employees regarding compliance with the highest standards of conduct in performance of official duties which is in the interest of all employees, especially the new joinees in SEBI." Strict dos and don'ts apply to employees of regulatory authorities when they interact with outsiders including the media. According to a former regulatory official, «Even retired employees have to maintain a satisfactory code of conduct under pension regulations — though rarely regulators like RBI or Sebi take actions on
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