MUMBAI, July 13 (Reuters) - India's markets regulator has imposed a two-year cooling-off period for former officials, barring them from representing clients before it in investigations, settlement proceedings and applications for fundraising or regulatory approvals, according to a government notification.
The regulator also extended investment restrictions to employees’ family members, the notification, published on Saturday, said.
The Securities and Exchange Board of India had decided to review its rules after former chief Madhabi Puri Buch faced conflict of interest allegations from the now-shuttered Hindenburg Research.
Buch had denied the allegations and was cleared by India's anti-corruption body last year.
The new rules, including the voluntary adoption of a stricter code of conduct for senior officials at the regulator, were approved by SEBI's board last month.
The rules, effective Monday, require SEBI officials to recuse themselves from matters involving family members, close associates and former professional relationships, and to disclose negotiations for future employment within 30 days.
Officials must also liquidate or freeze equity holdings before joining SEBI and refrain from trading while in office.
The regulator, in a departure from its 2008 code of conduct, extended restrictions on investments by employees' family members, including spouses and dependent children, with limited exemptions for employee stock option plans and pooled investment vehicles.
The rules also cap exposure to products offered by a single SEBI-regulated fund manager, including mutual funds, portfolio management services and alternative investment funds, at 25% of the employee's total investments.
Reporting by Jayshree P Upadhyay; Editing by Sonia Cheema
Source: Reuters