Capital markets regulator Securities and Exchange Board of India (SEBI) has refuted claims of toxic and unprofessional work culture at its offices, citing high employee standards and condemning few ‘external elements’ behind employee protests. The market watchdog markets regulator said in a statement on Wednesday that complaints of ‘public humiliation’ at its offices were "misplaced", responding to reports in the media earlier in the day.
In a letter to the finance ministry last month, SEBI employees said "immense work pressure" at the market regulator resulted in a "stressful and toxic work environment." According to business daily The Economic Times, which claimed to have seen a copy of the letter, the employees reportedly said that "shouting, scolding, and public humiliation" had become the norm in meetings at SEBI.
"The claims of unprofessional work culture in the letter dated August 6, 2024, are misplaced," SEBI said in its statement. The regulator suspects that junior officers have been receiving messages from outside parties encouraging them to "go to the media, the Ministry, or the Board," possibly for the outsiders' own agendas.
"Sebi apprehends that the junior officers have been receiving messages from external elements outside their group, effectively instigating them to 'go to media, go to the Ministry, go to Board', perhaps to serve their own purpose. In fact, the letter of August 06, 2024, was not sent by the SEBI employee associations to the Government (and a section of the media)," said SEBI.
The regulator said it was an anonymous email, and officers and associations condemned it and communicated the same to HRD through emails. Earlier today, SEBI reportedly told the business daily that employee matters have already been addressed. "Engagement with the employees to resolve their issues is a continuous process," the market regulator told The Economic Times.
The complaints against the market watchdog come as SEBI chairperson Madhabi Puri Buch is mired in multiple allegations. Earlier this week, the opposition Congress had questioned Buch's compensation from ICICI Bank, where she had worked before joining SEBI in 2017.
The Congress alleged that the SEBI chief held an office of profit at the private lender and received ₹16.8 crore in substantial benefits from the bank and its subsidiaries. On Tuesday, Congress leader Pawan Khera urged the SEBI chief to “come out clean, give a clarification and respond to” the party's charges.
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Pawan Khera questioned, “How can the retirement benefits be more than the salary she drew with ICICI? Her average annual salary at ICICI was ₹1.30 crore. However, her average pension and other retirement benefits were ₹2.77 crore. How is it even possible?”
Last month, US short-seller Hindenburg Research accused Buch and her husband Dhaval Buch of owning stakes in offshore funds used to allegedly inflate Adani Group stocks, which was under investigation for allegedly rigging stock prices. The SEBI chief and her husband denied the allegations, terming them ‘baseless’ and an attempted ‘character assassination.’
