The Securities and Exchange Board of India (SEBI) has issued a strong rebuttal to allegations of a toxic leadership culture after a leaked letter from SEBI employees to the Finance Ministry raised serious concerns. In its response, SEBI hinted that its staff may have been influenced by external forces to undermine the credibility of the organization and its leadership, suggesting a conspiracy to change the narrative regarding work environment issues.
SEBI dismissed claims of underpayment by highlighting that the starting salary for Grade A officers is Rs 34 lakh per annum, a figure that is above industry standards. The regulator also criticized demands from some employees for additional benefits and automatic promotions, stating that such requests were unreasonable and could lead to a substantial increase in cost to the company. Additionally, SEBI addressed concerns about the professionalism of its work culture, citing instances of underperformance, misreporting, and internal processes that may have contributed to a negative perception of its operational efficiency.
SEBI further alleged that certain junior officers had been influenced by external entities to stir up unrest within the organization, leading them to take actions like sending anonymous letters to the media and government entities. The regulator emphasized that the leaked letter to the Finance Ministry on August 6 was not endorsed by SEBI employee associations and was disavowed internally, indicating a potential external agenda at play. The response from SEBI included statements from employee unions and officers to support its claims and counter the accusations levied against the organization's leadership.
The allegations of a toxic leadership culture within SEBI come at a time when its Chairperson, Madhabi Puri Buch, is already facing criticism from various quarters. Accusations of conflict of interest in investigations against the Adani Group, as well as claims of receiving benefits from previous roles while at SEBI, have intensified pressure on Buch. Additionally, Subhash Chandra, founder of the Zee group, has accused Buch of corruption and interference in corporate mergers, placing SEBI under further scrutiny and internal division.