SEBI employees complain to govt about ‘toxic work culture’, say ‘public humiliation’ a norm in meetings: Report

Capital markets regulator Securities and Exchange Board of India (SEBI) employees have reportedly written a letter to the government raising concerns over ‘toxic work culture'. According to a report by The Economic Times, it is up to the market regulator to sort out HR issues within the institution. According to the letter dated August 6, accessed by ET, officials said, "Shouting, scolding and public humiliation have become a norm in meetings."

SEBI reportedly told the business daily that employee matters have already been addressed. "Engagement with the employees to resolve their issues is a continuous process," the market regulator told the newspaper.

Also Read: ‘How can retirement benefits exceed salary from ICICI?’ — Congress fires fresh ammo at SEBI chief Madhabi Puri Buch

The complaints against the market watchdog come as SEBI chairperson Madhabi Puri Buch is mired in multiple allegations. Earlier this week, the opposition Congress had raised questions over Buch's compensation from ICICI Bank, where she had worked before joining SEBI in 2017. The Congress alleged that the SEBI chief held an office of profit at the private lender and received ₹16.8 crore in substantial benefits from the bank and its subsidiaries.

Congress attacks SEBI chief on prior salary benefits

On Tuesday, Congress leader Pawan Khera urged the SEBI chief to “come out clean, give a clarification and respond to” the party's charges.

Pawan Khera questioned, “How can the retirement benefits be more than the salary she drew with ICICI? Her average annual salary at ICICI was ₹1.30 crore. However, her average pension and other retiral benefits turned out to be ₹2.77 crore. How is it even possible?”

Congress leader Jairam Ramesh took to microblogging platform X (formerly Twitter) to post a series of questions for the SEBI chief and the ICICI Bank's clarification. ‘’Why has this so-called "retiral benefit" been non-uniform both in terms of its frequency and amount?'' asked Ramesh.

-''Even if we were to assume that the Rs. 5.03 crores she received from ICICI in 2014-2015 (soon after her superannuation) was part of her "retiral benefit" and that she got nothing in 2015-2016, why did this so called "retiral benefit" resume in 2016-2017 and continue until 2021?''

Also Read: BIG claim by Congress on SEBI chief Madhabi Puri Buch, alleges drawing salary from ICICI Bank, ICICI Prudential

- ‘’The average salary drawn by Madhabi P. Buch from 2007 up until 2013-14 (right before her superannuation from ICICI) is Rs. 130 lacs per annum. However, the so-called “retiral benefit” given by ICICI to Madhabi P. Buch from 2016-17 to 2020-21 averages to around Rs. 277 lacs per annum. How can a person's "retiral benefit" be more than her salary as an employee?''

Following the allegations, ICICI Bank issued a clarification via a notice to the stock exchange, asserting that the payments made to Buch after her exit from the bank were purely retirement benefits, not salary or employee stock options.

The Congress leader countered ICICI's clarification that employees, including retired ones, had the option to exercise Esops up to 10 years post-vesting. Citing ICICI Bank's ESOP policy, which allows former employees to exercise their options within a maximum of three months post-termination, Khera asked, "Where is this 'revised policy' under which Madhabi Puri Buch was able to exercise ESOPs eight years after her voluntary termination?"

Also Read: ‘How can retirement benefits exceed salary from ICICI?’ — Congress fires fresh ammo at SEBI chief Madhabi Puri Buch

Adani-Hindenburg-SEBI row

Last month, US short-seller Hindenburg Research accused Buch and her husband Dhaval Buch of owning stakes in offshore funds that were used to allegedly inflate Adani Group stocks, which was under investigation for allegedly rigging stock prices. The Sebi chief and her husband denied the allegations, terming them ‘baseless’ and an attempted ‘character assassination’.

Also Read: Hindenburg’s new report alleges Sebi chief, husband owned stakes in offshore firms linked to Adanis

In its blog post, Hindenburg alleged that Madhabi Puri Buch and Dhaval Buch had invested in IPE Plus Fund 1, a Mauritius-registered fund, and Global Dynamic Opportunities Fund, a Bermuda-based fund.

It added that a company controlled by Vinod Adani had invested in the Global Dynamic Opportunities Fund, which then invested in IPE Plus Fund 1. Anil Ahuja, who had served as a director of Adani Enterprises, was the fund's founder and chief investment officer. Vinod is the elder brother of Adani Group's owner, Gautam Adani.

The allegations came a year after Hindenburg Research published a report accusing the Adani Group of financial irregularities, which caused a dramatic decline in the company's stock prices.