What impact can conflicts of interest have on regulatory bodies like SEBI

Discussion on the conflicts of interests related to SEBI chairperson.
Conflicts of interest within regulatory bodies like SEBI can undermine their ability to act impartially and enforce regulations effectively. Some conflicts related to the SEBI chairperson could include:
  • Impaired judgement: Conflicts may lead to biased decision-making, compromising the integrity of regulatory actions.
  • Loss of credibility: Perceived conflicts can erode public trust in the regulatory body and its leadership.
  • Regulatory capture: Conflicts could result in regulatory capture, where the interests of regulated entities are prioritized over investor protection.
  • Weak enforcement: Conflicts may hinder the enforcement of regulations, allowing misconduct to go unchecked.
Addressing and managing conflicts of interest is crucial to maintain the effectiveness and integrity of regulatory bodies like SEBI.
Answered 8 months ago
Rahul Preparing for Civil Services