New Delhi: Seeking to defuse tensions with employees protesting against alleged “unprofessional work culture,” SEBI Monday retracted its earlier statement blaming “external elements” for the unrest and committed to address the concerns ‘amicably through internal channels’.
The withdrawal comes nearly two weeks after a protest September 5, where hundreds of SEBI employees gathered outside the regulator’s headquarters demanding the withdrawal of the contentious September 4 press release and the resignation of SEBI chairperson Madhabi Puri Buch.
The initial statement had suggested that the protesting employees were being influenced by external forces to target SEBI’s credibility and leadership.
This was not the first instance of a protest at the SEBI, which witnessed a similar protest over a month-ago by some employees. At that time, officials had said that the protests were by a few elements and did not have the backing of the recognised unions or associations.
In its fresh statement Monday, the Securities and Exchange Board of India (SEBI) emphasized that it handles employee-related matters through proper internal mechanisms and that it had constructive discussions with officers from various grades.
“SEBI addresses employee-related matters through appropriate internal mechanisms. 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 organization’s high standards of governance and within a time-bound framework,” the regulator said.
Accordingly, the press release issued September 4 has been withdrawn, the regulator said.
Further, SEBI said its employees have reiterated their commitment to resolving concerns amicably through established internal channels, ensuring that such matters remain internal and managed within a time-bound framework.
“Employees have strongly condemned the unauthorized release of internal communication and have confirmed that all concerns shall be addressed amicably through established internal channels,” the statement noted.
Also, SEBI has acknowledged the critical role its employees have played over the past 36 years in shaping the Indian securities market into one of the most dynamic and well-regulated markets globally.
The withdrawal of the September 4 press release marks a significant shift in SEBI’s approach. The initial statement, which dismissed employee complaints as “misplaced” and suggested they were “misguided by external elements,” only added to the growing dissatisfaction among staff.
The initial statement was issued following a letter from around 500 SEBI employees to the Finance Ministry August 6, against the SEBI’s top management, they raised concerns about a “toxic” work environment, which includes instances of public humiliation and shouting down.
It was an unprecedented move for any financial regulator in India and escalated the internal crisis at SEBI.
For SEBI chairperson Buch, protests and internal issues come at a time when she is probably facing the most challenging times in her stint. The career banker-turned-regulator is battling speculations on whether a conflict of interest made her go slow on the probe against Adani Group and a raft of other allegations around it.
PTI