SEBI Attributes Toxic Work Culture Claims to ‘External Elements,’ Dismisses Allegations

The Securities and Exchange Board of India (SEBI) has firmly rejected allegations of a toxic work environment within the organization under its current leadership, labelling these claims as “misguided” and influenced by “external elements.” The market regulator issued a detailed statement on Wednesday, addressing concerns raised by some employees and refuting accusations of harsh language, unrealistic targets, and micromanagement.

The allegations, which surfaced in a letter reportedly sent by SEBI employees to the Union Finance Ministry on August 6, painted a picture of a deteriorating work culture. The letter, titled ‘Grievances of SEBI Officers – A Call for Respect,’ claimed that senior management had resorted to using unprofessional language, setting unattainable targets, and excessively monitoring employees’ every move. It further described a work environment where “shouting, scolding, and public humiliation” had become the norm, with fear being the primary driving force within SEBI.

However, SEBI’s statement suggested that these grievances, particularly related to a demand for a 55% increase in House Rent Allowance (HRA), had been manipulated by outside forces seeking to undermine the regulator’s credibility and leadership. SEBI acknowledged that employees had expressed concerns about the HRA, which has not been adjusted since 2023, but emphasized that these issues were being addressed through the appropriate channels.

The regulator expressed suspicion that some junior officers may have been influenced by external parties, who allegedly encouraged them to escalate their grievances to the media, the Ministry, or the SEBI Board. SEBI hinted that these external elements might have their own agendas, although it refrained from speculating on who they might be or what their motives were.

In response to the allegations, SEBI highlighted several measures it has implemented to enhance transparency, fairness, and accountability within the organization. This includes the adoption of a new Management Information System (MIS) for Key Result Areas (KRAs), aimed at ensuring that all employees are fairly assessed and recognized for their contributions.

“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 their processing capability or misreported their achievements of KRAs,” SEBI stated.

The regulator concluded by reaffirming its commitment to maintaining a professional and respectful work environment and addressing any legitimate concerns raised by its employees. SEBI also emphasized that it would continue to focus on its mission of protecting investors and regulating the securities market, undeterred by attempts to disrupt its operations.

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