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16 July 2026

SEBI Code of Conduct for Board Members

This is a specific regulatory update by a statutory body (SEBI) that directly addresses governance standards, conflict of interest, and ethical conduct for public officials, which are core themes in GS2 and GS4.

1 min read 2 questions 1 prelims

Notes

  • SEBI released a revised Code of Conduct for Board Members on July 15, 2026, following the Q1 meeting on June 19.
  • The new code classifies board member investments into 'permitted' and 'non-permitted' categories.
  • Non-permitted investments include equity, instruments convertible to equity, and derivatives.
  • Permitted investments include regulated pooled investment vehicles (e.g., SIPs, SIFs) and units of InVITs and REITs.
  • Whole Time Members are now explicitly brought under insider trading regulations and classified as persons possessing price-sensitive information.
  • The 2008 code previously only mandated disclosure of investments in listed, to-be-listed, and regulated intermediaries by members and their families.

Questions

  1. Discuss the significance of the revised SEBI Code of Conduct for Board Members (2026) in strengthening corporate governance and mitigating conflicts of interest within the capital market regulator. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The integrity of market regulators is paramount to maintaining investor confidence in the Indian financial system. In this context, analyze how the inclusion of Whole Time Members under insider trading regulations and the stricter classification of permitted investments contribute to the institutional autonomy and transparency of SEBI. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Under the revised 2026 SEBI Code of Conduct for Board Members, which of the following is classified as a 'non-permitted' investment?