SEBI recants; takes down its press release that singled out its staff as ‘misguided by external elements’ on September 5

The SEBI on Monday buckled under the pressure from some of its unsatisfied employees, and decided to retract the press release that the regulatory authority had released earlier in the month, in which it claimed that, on issues regarding HRA and other similar issues, SEBI’s employees had been misled by external forces. The Securities Exchange Board of India said in a release on Monday: “The Press Release no 20/2024 dated September 4, 2024, is hereby withdrawn.” 

The regulator had issued the said press release on September 5 in the backdrop of a media report which revealed that almost 499 out of the Grade A SEBI official had written to the central government in August about its “poisonous workplace culture”. The employees had also stated that it was normal for managers to shout, scold and embarrass them in meetings. 

SEBI had said in a withdrawn press release that it believed the junior officers who had been numerous in number, had been complaining mainly over HRA allowances, have been misguided, possibly by some outsiders. 

Several of SEBI employees had protested on September 5 in the morning at the regulator’s headquarter at BKC in the city, where they demanded withdrawal of the press release being issued the previous day, pointing out that it contains several wrong pieces of information.

The personnel of SEBI had expressed their displeasure regarding how its chairperson, Madhabi Puri Buch, introduced the toxic management culture in the organisation by writing a letter to the finance minister and before the release of Sebi on September 4, about 500 employees had done so.

The government had in its reply to SEBI officials noted that among their complaints in the letter was that its leadership had been ‘calling names’ and ‘shouting’ at them. ‘People use unprofessional language which is rife at the senior most level,’ police officers said to the officials in the report. But what was missing in Sebi’s clarification dated Sept 4 was this particular issue, said the officers which they claimed was the root of their complaint.

Specifically, in its Monday announcement, SEBI said that it had ‘Productive meetings with representatives of all grades of officers’ in which case Sebi and its employees ensure that the issues were strictly internal and will be handled as per the Sebi standards to time bound and its operational governance.

On 6th September, all SEBI officers demonstrated in front of the SEBI office with helmet and placards and demanded to revoke the press release. They also demanded the removal of SEBI Chairperson Madhabi Puri Buch for fabricating falsehood against the employees as per an internal working plan drafted and shared among the officials of the SEBI. 

On Monday (September 16) in its press release, the SEBI stated that it recognizes that its human resource has made its significant contribution in the development of Indian securities market over the period of thirty-six years to place it among few of the most dynamic and properly regulated markets across the globe. That is why the regulator stated that it deals with the employee-related issue via proper internal channels. 

“It also said after constructive discussions with representatives of all the grades of officers SEBI and its employees have assured that such issues are strictly internal and will be managed by following the SEBI and its high standards of governance and within a time-bound framework.”

It further declared that employees have roundly condemned the leakage of internal communiqué and have assured that all complaint shall be resolved courteously via official protocols.

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References:

1. https://www.msn.com/en-in/money/topstories/sebi-backtracks-on-september-4-release-that-blamed-external-elements-for-staff-agitations/ar-AA1qDPoC
2. https://timesofindia.indiatimes.com/business/india-business/sebi-backtracks-on-september-4-release-that-blamed-external-elements-for-staff-agitations/articleshow/113390237.cms

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