Sebi withdraws staff misguided by external elements statement

The Securities and Exchange Board of India, helmed by Madhabi Puri Buch, has taken back its September 4 press statement in which it had blamed “external elements” for employee agitation at the market regulator.

The U-turn comes after Sebi officers across grades protested against the September 4 media release, describing it to be a fake narrative against them. The employees, however, haven’t withdrawn their complaint to the finance ministry about what they termed unfriendly HR practices at Sebi.

On Monday, the regulatory body said after holding “constructive” discussions with representatives of all grades of officers, both sides have agreed to manage these “internal” issues among them and in line with the organisation’s governance standards.


“Accordingly, the press release of September 4 stands withdrawn,” Sebi said.

Sources said Buch was not involved in the discussions with employees, but other board members were. “They felt that a resolution should be found for employees’ concerns,” one of the people in the know said.

Sebi has about 1,000 officers and two-thirds of them demanded the withdrawal of the September 4 statement. They also staged daily protests since September 5 at the Sebi headquarters in Mumbai’s Bandra Kurla Complex.

Sebi had issued the September 4 statement after ET reported that its employees had made a complaint to the finance ministry expressing their displeasure about the “toxic” work culture being fostered under Buch’s leadership. Their primary grievance was about the “harsh and unprofessional language” used by the leadership towards them. “Shouting, scolding and public humiliation have become a norm in meetings,” read the August 6 letter to the finance ministry, signed by about 500 Sebi officers.

This is perhaps the first instance where Sebi has withdrawn its official statement following protests from its employees. Commending the employees, Sebi stated on Monday that they have been playing a vital role over the past 36 years in shaping the Indian securities market into one of the most dynamic and well-regulated markets globally.