Why is it important to address conflicts of interests in regulatory bodies like SEBI

Highlighting the significance of preventing conflicts of interests in organizations like SEBI.
  • Prevents biased decision-making: Addressing conflicts of interests in regulatory bodies like SEBI ensures that decisions are made objectively, without being influenced by personal interests or external pressures.
  • Upholds integrity and credibility: Transparency in decision-making processes enhances the integrity and credibility of regulatory bodies, fostering trust among stakeholders and the general public.
  • Protects investors and market participants: By preventing conflicts of interests, regulatory bodies can better safeguard the interests of investors and ensure fair and efficient functioning of the markets.
  • Promotes fair and competitive market environment: Eliminating conflicts of interests helps in creating a level playing field for all market participants, promoting fair competition and market efficiency.
  • Enhances regulatory effectiveness: By maintaining independence and integrity, regulatory bodies like SEBI can effectively fulfill their mandate of overseeing and regulating the financial markets.
Answered 8 months ago
Rava Preparing for Civil Services