SEBI backtracks; withdraws its staff ‘misguided by external elements’ press release

In the now withdrawn press release, the capital markets regulator had said, “It is our belief that SEBI’s junior officers, who were in large numbers, originally aggrieved in respect of HRA allowances, have been misguided, perhaps by external elements.”

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The logo of Securities and Exchange Board of India (SEBI) is seen on its headquarters in Mumbai. (Reuters)

GIVING IN to the demands of its protesting employees, the Securities and Exchange Board of India (SEBI) on Monday withdrew its press release issued earlier this month in which the regulator had said that its employees were “misguided by external elements” on issues related to house rent allowance (HRA).

Sebi and its employees have agreed to resolve all issues amicably, the regulator said in a fresh statement. “Following constructive discussions with representatives of all grades of officers, Sebi and its employees have reaffirmed that such issues are strictly internal and will be managed in accordance with the organisation’s high standards of governance and within a time-bound framework,” the regulator said in a release issued on Monday.

“Accordingly, the press release no. 20/2024 dated September 4, 2024, stands withdrawn,” it said.

Sebi further said its employees have condemned the unauthorised release of internal communication and have confirmed that all concerns shall be addressed amicably through established internal channels.

The regulator had issued its earlier press release in response to a media report which said nearly 500 Grade A Sebi officials complained to the government in August about a “toxic work culture”. The employees had also claimed that shouting, scolding and public humiliation were a norm at meetings.

In the now-withdrawn press release, the capital markets regulator had said: “It is our belief that Sebi’s junior officers, who were in large numbers, originally aggrieved in respect of HRA allowances, have been misguided, perhaps by external elements.”

It had said that employees were demanding a 55 per cent raise in HRA, over the allowance set in 2023. The employees also flagged an issue on updation of Sebi’s automated Management Information System for Key Result Areas, which had been designed to bring more transparency, fairness and accountability.

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The regulator had termed the employees’ claim of unprofessional work culture, mentioned in their complaint to the government, as “misplaced”.

On September 6, Sebi officials staged another protest outside the regulator’s headquarters, demanding withdrawal of the press release. They also sought the resignation of Sebi Chairperson Madhabi Puri Buch for spreading lies against employees, according to an internal agenda circulated among officials of the regulator.

In the press release issued on Monday, Sebi acknowledged the critical role its employees had played in the past 36 years in shaping the Indian securities market into one of the most dynamic and well-regulated markets globally.