SEBI responds to Claims of Toxic Work Culture from Employees

The Securities and Exchange Board of India (SEBI) has recently addressed concerns over alleged complaints of a “toxic work culture” raised by some of its junior officers to the finance ministry. SEBI responded that the officers earn an annual entry-level salary package of Rs 34 lakh and have been “misguided” by external influences. These influences, according to SEBI, are attempting to damage the credibility of the agency and its leadership.

Misguided Complaints

A letter was sent anonymously to the finance ministry on August 6, outlining grievances about the work culture at SEBI. SEBI clarified that this letter did not come from any official employee associations. Instead, SEBI believes that external elements led junior officers to feel that they were underpaid and deserved automatic promotions. The complaint, which was quoted in a news report, mentioned that “shouting, scolding, and public humiliation” had become routine at SEBI.

Approximately 500 officers sent these complaints to the government, but SEBI’s response refuted many of the claims. The agency expressed concern that external influences had encouraged employees to believe they should not be held to the high standards of performance and accountability expected of a regulatory body like SEBI.

SEBI’s Response to Grievances

In a five-page statement, SEBI explained that some of the officers’ frustrations stemmed from performance-related issues. These included problems such as officers underreporting their actual capabilities, misreporting the achievement of key result areas (KRAs), delaying decision-making by moving files between departments, and artificially adjusting appraisal scores to qualify for promotions.

SEBI clarified that these issues were dealt with through proper accountability measures. Officers were given direct feedback, and necessary corrective actions were taken when such instances occurred.

Demands for Higher Pay

The complaint also highlighted demands from SEBI employees to increase their housing rent allowance (HRA) by 55% over what was fixed last year. According to SEBI, this demand would raise the officers’ annual cost-to-company (CTC) by Rs 6 lakh, a 17.6% increase. SEBI emphasized that its employees are already “well paid” and that their compensation is competitive, even when compared to the private sector.

SEBI’s New Systems and Initiatives

Despite these grievances, SEBI pointed out that most employees have adapted well to new systems implemented to improve organizational performance. These systems include setting key responsibility areas (KRAs) at the beginning of each year, monthly reviews through a management information system (MIS), and an annual performance review of each team. SEBI also mentioned that its adoption of technology has been embraced by employees, which has enhanced productivity.

Conclusion

While SEBI has responded to the complaints about the work culture, it remains silent on the specific allegations of “toxicity.” The planned demonstration by officers, which was scheduled for September 5, has been canceled following SEBI’s clarification. As the market regulator continues to address both internal and external challenges, it remains committed to maintaining high standards of accountability and performance.