SEBI Scandal: Around 200 employees of the Securities and Exchange Board of India (SEBI) held a protest at the market regulator's headquarters in Mumbai on Thursday, expressing dissatisfaction over a recent press release by SEBI. The employees objected to the press statement, which labeled their earlier letter to the Finance Ministry — detailing issues of unprofessional work culture — as "misguided by external elements." The protest, which lasted for about two hours, concluded with employees returning to their offices.
SEBI, in its defence, refuted the claims of a toxic work environment, calling them "misplaced". According to an internal communication shared among the employees, the protest was aimed at demonstrating dissent and unity against what they described as "arm-twisting" tactics by SEBI's top management, disguised through the press release.
"The immediate demand is the withdrawal of the press release and the resignation of SEBI Chairperson Madhabi Puri Buch for spreading misinformation about SEBI's employees," the message read.
Last month, SEBI employees had written to the Finance Ministry, highlighting "immense pressure" at the regulatory body, which they said had led to a "stressful and toxic work environment." In response, SEBI issued a press statement attributing the employees' concerns to external influences, citing disputes over demands for higher rental allowances and criticisms of internal work performance standards. SEBI also claimed that "outside elements" had influenced employees to reject accountability and performance standards, without elaborating further.
The protest comes amid ongoing allegations against Chairperson Buch, who is under scrutiny for potential conflicts of interest. US-based short-seller Hindenburg Research and opposition political parties have accused Buch of holding investments in offshore funds linked to the Adani Group, currently under investigation by SEBI. Buch has denied the allegations.
In addition, the Congress party has claimed Buch continued to receive income from ICICI Bank, where she was previously employed, after joining SEBI. ICICI Bank has denied these claims, and both Buch and SEBI have yet to comment.
Despite the internal unrest, SEBI reaffirmed its commitment to maintaining transparency and accountability in its operations in its official statement.