Sebi Withdraws Press Release that Alleged ‘External Elements’ for Employees’ Protest

The Securities and Exchange Board of India (Sebi) on Monday retracted a press release that blamed outside influences for its employees’ protest. Additionally, in the recent press release, the regulator, while appreciating the contribution of its employees for nearly 36 years, said it will address employee-related concerns through proper internal mechanisms. 

“Accordingly, the Press Release no. 20/2024 dated September 04, 2024, stands withdrawn. Employees have strongly condemned the unauthorised release of internal communication and have confirmed that all concerns shall be addressed amicably through established internal channels,” said Sebi in a press release on September 16. 

What did the previous statement by Sebi say? 

Sebi released a statement following a letter sent by its employees to the finance ministry on August 6, titled ‘Grievances of SEBI Officers-A Call for Respect’ came to the forefront and a consequent silent protest by nearly 200 employees on September 5. 

Following this, the regulator, in a press release, accused the employees of being “misguided by external elements to target the credibility of Sebi and its leadership”. The statement also added that under the Sebi employees service regulations, the employees are not allowed to hold demonstrations that are “prejudicial to the interests of the board sovereignty”. 

Around 200 employees of the regulator protested on September 5 at Sebi’s headquarters in Mumbai. The protest followed the five-page press release that accused outside elements of disturbing the workforce rather than addressing the employees concerns. 

Nearly 500 Sebi officials had written a letter to the Ministry of Finance, complaining about the leadership and HR practices that encouraged a ‘toxic work culture’ at the organisation under the leadership of chairperson Buch. “Shouting, scolding and public humiliation have become a norm in the meetings,” the employees said in the letter.  

The regulator has nearly 1,000 officers of grade A and above; around half of them have signed the letter addressed to the finance ministry. 

The letter brought Sebi chief Madhabi Puri Buch, under the public radar again. She was already in troubled waters as her name surfaced in the Adani-Hindenburg saga. The American short-seller Hindenburg Research, in its recent report on August 10, accused Sebi chief and her husband Dhaval Buch of holding stakes in offshore funds used for siphoning money by Adani Group.