SEBI Denies Claims Of Employee Mistreatment And 'Toxic' Work Culture

In a press release, the market watchdog stated that its junior employees were misinformed about automatic promotions and underpaid despite having a cost-to-company of Rs 34 lakh per annum

The Securities and Exchange Board of India (SEBI) on Wednesday denied the allegations of fostering a toxic work culture as "misguided" and an attempt to undermine employee capabilities. The market regulator clarified that its recent human resource (HR) initiatives were designed to acknowledge deserving employees through objective performance evaluations.

In a press release, the market watchdog stated that its junior employees were misinformed about automatic promotions and underpaid despite having a cost-to-company of Rs 34 lakh per annum. They were also made to believe they should not be held to high accountability standards.

SEBI stressed that the email did not come from employee associations, which had actually condemned it. The market regulator also suggested that “junior officers have been receiving messages from external elements outside their group, effectively instigating them to go to the media, go to the ministry, go to board…perhaps to serve their own purpose.”

SEBI’s response followed reports that employees had recently contacted the finance ministry, expressing their concerns about senior leadership. The anonymous email sent on August 6 accused the leadership of using unprofessional language, imposing extended working hours, and creating unrealistic work conditions that harmed employees' mental health. 

It also noted that office installations were monitoring intraday attendance, which suggested a lack of trust from leadership. The email claimed that key result areas (KRAs) were increased by 30-40 per cent with tight deadlines, leading to excessive stress. SEBI clarified that the email did not come from employee associations that had condemned it.

According to SEBI's release, a week after the initial letter, the employees submitted a list of 16 demands for both monetary and non-monetary benefits, including an increase in the House Rent Allowance (HRA) and automatic promotions at lower performance ratings without interviews. 

Previously, SEBI employees had requested a 55 per cent increase in HRA over the 2023 allowance and an update to the automated management information system for KRAs. Some staff members organised a 15-minute silent protest in early August to draw attention to these issues.

“SEBI officers are already well paid, and for entry-level officers at Grade A, the cost to the company is approximately Rs 34 lakh per annum, which compares extremely favourably even with the corporate sector. The new demands placed by them would amount to an additional CTC of almost Rs 6 lakh per annum,” the market watchdog said.

The regulator also highlighted that over the past 2 to 3 years, it had established key result areas (KRAs) at the beginning of each year, set monthly targets, ensured accountability for pending applications, conducted end-of-year performance reviews by a panel, and implemented a promotion policy based on assessment criteria, seniority, and past performance.

According to a Business Standard report citing sources, the finance ministry advised that the HR-related issues should be addressed internally upon receiving the letter from SEBI staff.