Seeking to defuse tensions with employees protesting against alleged "unprofessional work culture," Sebi has retracted its earlier statement blaming "external elements" for the unrest and committed to address the concerns 'amicably through internal channels'.
The withdrawal comes nearly two weeks after a protest on September 5, where hundreds of Sebi employees gathered outside the regulator's headquarters demanding the withdrawal of the contentious September 4 press release and the resignation of Sebi chairperson Madhabi Puri Buch.
The initial statement had suggested that the protesting employees were being influenced by external forces to target Sebi's credibility and leadership. This was not the first instance of a protest at the Sebi, which witnessed a similar protest over a month-ago by some employees. At that time, officials had said that the protests were by a few elements and did not have the backing of the recognised unions or associations.
In its fresh statement on Monday, Sebi emphasized that it handles employee-related matters through proper internal mechanisms and that it had constructive discussions with officers from various grades. "Sebi addresses employee-related matters through appropriate internal mechanisms.
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"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," the regulator said. Accordingly, the press release issued on September 4 has been withdrawn, the regulator said.
Further, Sebi said its employees have reiterated their commitment to resolving concerns amicably through established internal channels, ensuring that such matters remain internal and managed within a time-bound framework.
The withdrawal of the September 4 press release marks a significant shift in Sebi's approach. The initial statement, which dismissed employee complaints as "misplaced" and suggested they were "misguided by external elements," only added to the growing dissatisfaction among staff.
It was an unprecedented move for any financial regulator in India and escalated the internal crisis at Sebi. For Sebi chairperson Buch, protests and internal issues come at a time when she is probably facing the most challenging times in her stint. The career banker-turned-regulator is battling speculations on whether a conflict of interest made her go slow on the probe against Adani Group and a raft of other allegations around it.
(Except for the headline, this story has not been edited by DNA staff and is published from PTI)
