Sebi withdraws statement blaming ‘external elements’ for employee protest

Sebi withdrew its statement blaming external influences for a protest by some of its employees about working conditions. In a fresh statement, the markets regulator said it recognised the role of its employees and promised to address their concerns.

“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,” Sebi said in a statement issued on Monday. “Accordingly, the September 4 press release stands withdrawn.”

The earlier statement was in response to reports about Sebi employees complaining about their working conditions, allowances and perks. Following Sebi’s 4 September statement, its employees staged a silent protest spanning several days demanding a withdrawal of the statement. 

In its latest statement, Sebi acknowledged the critical role played by its employees over 36 years in shaping India’s securities market. Sebi added that it was addressing employee-related matters through appropriate internal mechanisms.

Sebi in its 4 September statement had acknowledged that its employees were demanding a 55% increase in house rent allowance and other benefits. Employees had also raised the issue of updating Sebi’s automated management information system for key result areas (KRAs), which had been designed to bring more transparency, fairness and accountability within Sebi.

Sebi had termed the demands as misplaced and expressed its apprehension that junior officers were receiving messages from external elements instigating them to approach the media, the finance ministry and Sebi’s board.

Sebi, however, had stressed that it was not speculating on who the external elements were or their motives.

A former Sebi officer said the withdrawal of the earlier statement indicated discontent among employees towards the management and confirmed there was merit in their allegations.

“This raises the question of who authorized the press release and whether the board's approval was obtained beforehand,” this person said, declining to be identified.

“Is it appropriate for an individual to participate in the process of issuing a press release when the accusations are directed against them? This situation challenges the principle that no one should be a judge in their own cause,” the former Sebi official added.