Sebi is considering a new set of norms to check 'conflict of interests' in the stock market, as it looks to rein in any nexus among the corporates, research analysts, investment advisors, and various market entities. The new rules would also look at discouraging misaligned employee incentives -a practice prevalent among the capital market entities for rewarding their staff purely on the basis of business generated by them and irrespective of the interest of customers or investors being safeguarded.

The Securities and Exchange Board of India (Sebi) is framing these rules in accordance with a new set of initiatives proposed by the International Organization of Securities Commissions (IOSCO ) to safeguard the markets across the world from any irregularities .

The new rules, to be called Guidelines For Dealing With Conflicts of Interest in Securities Market, would apply to all the entities present in the Indian capital market, directly or indirectly, as also their employees .