Sebi employees reportedly flagged toxic work culture in August

Amid a barrage of allegations of serious misconduct by the Sebi chairperson, including claims of conflict of interest, employees at the market regulator reportedly reported a toxic work culture to the finance ministry last month. Madhabi Puri Buch has categorically denied these allegations. According to a letter dated August 6 to the finance ministry, meetings often involve "shouting, scolding, and public humiliation," with the leadership under Madhabi Puri Buch allegedly using "harsh and unprofessional language" with team members.

The letter, signed by about half of the approximately 1,000 senior officers at Sebi, was submitted days before US-based short-seller Hindenburg Research leveled serious allegations against Buch and her husband, Dhaval Buch. These charges have been categorically denied by the couple.

The latest developments come amid calls for a thorough investigation into Buch's conduct during her tenure at Sebi.

On August 10, Hindenburg Research accused Buch and her husband of having previously invested in offshore funds also used by the Adani Group, amid several other serious allegations.

Although the couple has denied the charges, including a potential conflict of interest in Buch's investigations into the conglomerate, many financial experts have questioned the credibility of Sebi under her leadership.

Former Finance Secretary SC Garg told Zee Business last month that Buch should step down, as the recent turn of events is "not good for the reputation" of the country's market regulator. In his view, the government should investigate the matter closely.

Several foreign investors have also raised concerns. Among them, Daniel Geltrude, an eminent business and tech analyst and economist, stated that the allegations "can destroy investor confidence."

(More details will be added here shortly)