Last month, a storm brewed within the Securities and Exchange Board of India (Sebi) as officials voiced serious concerns about the working conditions under the current leadership. For the first time in its history, Sebi’s internal discord has made headlines, revealing a troubling picture of the workplace environment.
Employees have voiced their unhappiness with SEBI’s leadership, citing several key issues:
- Unfair Allowances: The allowances given to SEBI employees have not been updated to match those given to officers at the Reserve Bank of India (RBI). This disparity has caused frustration among SEBI staff.
- New Compliance System: A new system for uploading Key Result Areas (KRAs) has been implemented. Employees have been told that their allowances could be stopped if they don’t comply, which has added to their dissatisfaction.
The Complaint: A Toxic Work Culture?
On August 6, a letter surfaced from Sebi officials accusing the leadership of creating a toxic work culture. The letter, reviewed by ET, paints a grim picture of the internal environment at the regulator. According to the officials, meetings have become arenas of “shouting, scolding, and public humiliation.”
This complaint arrives amid ongoing controversies involving Sebi Chairperson Madhabi Puri Buch. She is under scrutiny for alleged conflicts of interest related to the regulator’s inquiry into Adani and accusations from the Zee Group founder, Subhash Chandra, about corruption. Buch and ICICI Bank, her former employer, have both denied any wrongdoing. Sebi has responded to these issues by stating that internal matters have been resolved, with the regulator emphasizing that employee engagement and resolution are ongoing processes.
A Wide-Ranging Complaint
The letter, signed by around 500 out of 1,000 Grade A officers, criticizes the leadership’s approach. It accuses them of using “harsh and unprofessional language,” imposing “unrealistic work targets,” and monitoring employees’ movements closely. This environment, according to the officials, has severely impacted their mental health and work-life balance.
The officials claimed they reached out to the finance ministry after their concerns were ignored by Sebi management. They argue that instead of improving efficiency, the new policies and systems have created more problems, leading to an oppressive atmosphere at work.
Management’s Response
Sebi has addressed the issues raised by the officers, stating that changes have been implemented to improve the work environment. For instance, the format of review meetings has been adjusted, and the installation of turnstile gates to monitor attendance will be reviewed after six months based on employee feedback. Sebi also asserts that the Key Result Areas (KRAs) targets, which were reportedly increased by 20-50%, have been set after thorough consultation and are deemed reasonable, though some minor adjustments have been made.
Impact on Employees
The letter highlights that the management’s approach has led to increased stress and anxiety among employees. The in-house mental health counsellor, who previously had a low caseload, is now overwhelmed with requests for support. The officials argue that employees are being treated as if they are machines, with unrealistic expectations driving up stress levels.
Moving Forward
As Sebi works to address these internal issues, the focus will be on balancing efficiency with a supportive work environment. The regulator has committed to ongoing adjustments based on feedback, but the effectiveness of these measures remains to be seen. The situation at Sebi serves as a reminder of the importance of maintaining a healthy workplace culture, even in high-pressure environments like financial regulation.
