New Delhi, July 13 (IANS): The Securities and Exchange Board of India (SEBI) has strengthened its employee conduct framework by notifying comprehensive amendments to its service regulations, introducing stricter conflict-of-interest safeguards, tighter investment restrictions and enhanced disclosure requirements. Under the SEBI (Employees’ Service) (Amendment) Regulations, 2026, the regulator has expanded the definitions of ‘family’ and ‘dependent’ to include adopted and stepchildren as well as individuals substantially dependent on an employee. The amended rules also introduce a two-year cooling-off period during which retired or resigned employees will be barred from representing any person before SEBI in matters related to proceedings, adjudication, settlements or approvals. Employees will also be required to disclose any employment negotiations with prospective employers within one month of initiating such discussions.
The revised regulations further prohibit employees and their family members from making fresh investments in equities, equity-convertible instruments or derivatives during the employee’s tenure with the regulator, while continuing to permit investments through regulated pooled vehicles such as mutual funds and real estate investment trusts (REITs). SEBI has also capped investments in certain regulated products at 25 per cent of an employee’s total investment portfolio, with limited exemptions for specific cases such as employee stock options granted to spouses and discretionary portfolio management services. In addition, the regulator has raised the gift disclosure threshold from Rs 10,000 to Rs 50,000 and provided greater clarity on the acceptance of customary gifts, further strengthening transparency and governance standards within the organisation.