Madhabi Puri Buch-led Sebi withdraws press release on unprofessional work culture

Capital markets regulator Sebi on Monday withdrew its press release issued on September 4, which addressed claims of unprofessional work culture, stating that these concerns are "misplaced" and reaffirmed that employee-related issues will be managed internally.

The withdrawal came days after a protest by a large number of Sebi employees outside the regulator's headquarters on September 5, a day after the press release. They had demanded the withdrawal of the statement and the resignation of Sebi chief Madhabi Puri Buch.

In a statement on Monday, Sebi acknowledged the critical role its employees have played over the past thirty-six years in shaping the Indian securities market into one of the most dynamic and well-regulated markets globally.

Sebi said it addresses employee-related matters through appropriate internal mechanisms.

"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Accordingly, the press release issued on September 4 has been withdrawn.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 decision to retract the press release came after employees strongly condemned the unauthorized dissemination of internal communications.

Sebi 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.

"Employees have strongly condemned the unauthorized release of internal communication and have confirmed that all concerns shall be addressed amicably through established internal channels," the statement noted.

For Puri, protests and internal issues have 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.

In what is unprecedented for any financial regulator, around 500 employees wrote to the Finance Ministry on August 6, against the top management, for what they called a "toxic" work environment, which includes instances of public humiliation and shouting down.

After the publishing of a media report about the letter, Sebi responded with a press release, which stated such claims are "misplaced", which seemed to have irked the employees.

The regulator stated that some "external elements" had instigated its employees into believing that they shouldn't be held to high standards of performance and accountability, though, it did not provide specific details.