Employees at the Securities and Exchange Board of India (SEBI) have raised serious concerns about what they describe as a ‘toxic work culture’ within the organization. According to a letter sent to the government, SEBI officials have reported that shouting and public humiliation have become standard practices during meetings. This revelation comes at a time when SEBI Chairperson Madhabi Puri Buch is facing significant scrutiny and multiple allegations.
Toxic Work Culture at SEBI: Employees Speak Out
In a letter dated August 6, which was initially reported by The Economic Times, SEBI employees expressed their frustration with the pervasive toxic work environment. The letter details how abusive behaviors such as shouting and public scolding have become routine during internal meetings. This atmosphere has reportedly contributed to a highly hostile and unprofessional workplace.
On September, SEBI employees had formally raised these issues with the government. They described a working environment where aggression and humiliation are commonplace, severely impacting morale and productivity.
SEBI has responded to these concerns by stating that they are actively addressing the issues raised by their employees. The regulator emphasized that resolving such employee concerns is an ongoing process and reiterated its commitment to improving the workplace environment.
Scrutiny and Allegations Surrounding SEBI Chairperson
The concerns about SEBI’s toxic work culture come amid growing scrutiny of SEBI Chairperson Madhabi Puri Buch. Recently, the Congress party questioned the compensation Buch received from ICICI Bank, her previous employer before she joined SEBI in 2017. Congress senior leader Pawan Khera alleged that Buch received a substantial amount in compensation, including ₹16.80 crore from ICICI Bank, ICICI Prudential, and employee stock options (ESOPs) up until September 2.
Khera further claimed that Buch received regular payments from ICICI Bank between 2017 and 2024 and was paid ₹2.17 lakh by ICICI Prudential in 2021-22. The initial value of her ESOPs was reported to be ₹2.66 crore.
In response, ICICI Bank issued a clarification stating that the payments made to Buch post-departure were retirement benefits, not salary or stock options. This clarification, however, was challenged by Khera. He referred to ICICI’s ESOP policy, which typically allows former employees to exercise their options within three months after termination. Khera questioned the legitimacy of a “revised policy” that allowed Buch to exercise her ESOPs eight years after her departure from the bank.
Adding to the controversy, Hindenburg Research, a U.S. short-seller, accused Buch and her husband Dhaval Buch of owning stakes in offshore funds used to allegedly inflate Adani Group stock prices. This allegation is part of an ongoing investigation into stock price manipulation involving the Adani Group.
Defending Against Accusations and Ensuring Workplace Improvements
In response to the Hindenburg allegations, SEBI Chairperson Buch and her husband have defended themselves vigorously. They asserted that the allegations were an attempt to undermine SEBI’s credibility and attack Buch’s character. The Buchs clarified that their investment in a fund managed by IIFL Wealth Management was made as private individuals based in Singapore, and occurred two years before Madhabi Buch’s appointment to SEBI.
The current situation at SEBI reflects broader issues within the organization, including the ongoing challenge of maintaining a positive and professional work environment amidst external and internal pressures. SEBI’s efforts to address these issues are crucial in restoring a healthy workplace culture and ensuring that all employees feel respected and valued.
As SEBI continues to navigate these challenges, it remains essential for the organization to focus on resolving internal issues and fostering a work environment free from toxic behaviors. The regulator’s commitment to addressing these concerns will be key in improving employee morale and maintaining the integrity of the institution.
Overall, the allegations and the reported toxic work culture at SEBI highlight the need for ongoing vigilance and reform to ensure a supportive and professional work environment.
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