SEBI adopts internal code of conduct for board members

Capital market regulator Securities and Exchange Board of India (SEBI) has come out with a code of conduct for members of its governing board in a move to raise its standards of corporate governance.

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.'' SEBI said.

The code, adopted by the board in its meeting held on 4 December, is applicable to the chairman of the board as well.

The code includes 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

Under the code of conduct, a member should take all steps necessary to ensure that any conflict of interests to which he may be subject to does not affect any decision of the board.

A member should disclose his/her interests which may conflict with his/her duties.