SEBI blames ‘external elements’ for toxic work culture claims: ‘Instigating officers to go to media’

The Securities and Exchange Board of India (SEBI) on Wednesday categorically refuted the allegations of a toxic work environment within the organisation under its current chief Madhabi Puri Buch, describing them as “misguided” and influenced by “external elements”.

In a detailed statement, the market regulator dismissed claims that its work culture had become toxic, characterised by harsh language, unrealistic targets, and micromanagement. Instead, the regulator suggested that the grievances raised by some employees, particularly regarding their House Rent Allowance (HRA), had been manipulated by outside forces to undermine SEBI's credibility and its leadership.

Also Read | Congress counters ICICI Bank’s defence of payments to SEBI chief, poses fresh questions: ‘Let PM respond’

What SEBI employees claimed

The statement came in the backdrop of media reports suggesting Sebi employees had written a letter to the Union to the finance ministry on August 6, raising concerns over "toxic work culture". The letter, titled 'Grievances of SEBI Officers - A Call for Respect', accused senior management of using unprofessional language, setting unachievable targets, and micromanaging to the point of monitoring employees' "minute-by-minute movements."

The employees claimed that "shouting, scolding, and public humiliation have become a norm in meetings," and that fear has become the "primary driving force" within SEBI over the past few years. The letter went on to criticise the leadership for focusing on technological advancements while neglecting "best-in-class man management, leadership, and motivation methods."

SEBI acknowledged that employees had expressed concerns, particularly over a 55% increase in HRA, which they had been demanding since the allowance was last set in 2023. However, SEBI suggested that after the media reported on these protests as being purely about working conditions and perks, a group of employees deliberately reframed the issue as one concerning the work environment to gain leverage in their negotiations.

Also Read | ICICI denies paying salary, ESOPs to SEBI chief Madhabi Buch after retirement

SEBI's statement outlined a series of measures it has implemented over the past few years to improve transparency, fairness, and accountability, including the adoption of a new Management Information System (MIS) for Key Result Areas (KRAs).

“The claims of an unprofessional work culture in the letter dated August 6, 2024, are misplaced and seem to stem from instances” where certain officers underpitched "processing capability" or misreported their achievements of KRAs, SEBI said.

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 6, 2024, was not sent by the Sebi employee associations to the Government (and a section of the media)," the statement noted.

The regulator said it would not speculate on who those external elements may be or what their motives might be.