SEBI Staff Stage Protest at Mumbai HQ, Demand Chairperson Madhabi Puri Buch's Resignation

On September 5, up to 200 employees of the Securities and Exchange Board of India (SEBI) staged a protest at the market regulator's headquarters in Mumbai.

The employees were demonstrating against a recent press release issued by SEBI, which dismissed their earlier concerns about an unprofessional work culture as being "misguided by external elements."

The protest, which lasted a couple of hours, was a response to SEBI's assertion that the claims of a toxic work environment were "misplaced", reported Money Control.

According to an internal message circulated among the employees, the protest aimed to "show dissent and unity against the arm-twisting exercise done by the top management in the garb of a press release."

The employees demanded the immediate withdrawal of the press release and called for SEBI Chairperson Madhabi Puri Buch to resign for allegedly spreading misinformation about the situation.

The issue came to light after some SEBI employees, in a letter to the Finance Ministry last month, expressed that there was "immense pressure" within the regulator, leading to what they described as a "stressful and toxic work environment."

In response, SEBI's press release attributed these claims to a demand for higher rental allowances and efforts to prevent "misreporting of targets achieved and delays in taking decisions."

The regulator further alleged that "outside elements" had influenced employees to believe they should not be held to high standards of performance and accountability.

However, SEBI did not disclose any specifics about these external influences.

In the wake of these internal tensions, SEBI Chairperson Madhabi Puri Buch has faced additional scrutiny due to separate allegations of conflict of interest.

US short-seller Hindenburg Research, along with opposition political parties, has called for Buch's resignation, alleging that she and her husband had previous investments in offshore funds linked to the Adani Group, which is currently under SEBI's investigation.

Buch has categorically denied these allegations.

Further complicating matters, the Congress party has accused Buch of continuing to earn income from ICICI Bank, a regulated entity where she worked before joining SEBI. While ICICI Bank denied the claim, Buch and SEBI have not provided any public comments on the matter.

Despite these controversies, SEBI reiterated in its press release that it remains "committed to serving the complex market ecosystem to a high level of transparency, and responsiveness."

The regulator also stood by its stance that the allegations made by the employees were without merit, asserting that their dissatisfaction was driven by factors unrelated to the regulator's commitment to performance and accountability.