Why SEBI workers are demanding chairperson Madhabi Buch's resignation

Why SEBI workers are demanding chairperson Madhabi Buch's resignation
05 Sep 2024

A significant number of Securities and Exchange Board of India (SEBI) employees staged a silent protest today at the regulator's headquarters in Mumbai.

The demonstration was triggered by a press release issued by SEBI on Wednesday, which attributed the unrest among staff to "external forces."

The protesting employees are demanding the withdrawal of this statement and calling for the resignation of their chief, Madhabi Puri Buch.

Press release intensifies employee unrest
Escalating tensions

As per the recent report, SEBI officials had lodged a complaint with the finance ministry last month, accusing the top leadership of fostering a toxic work culture.

In response to these allegations, SEBI issued a press release on Wednesday evening.

The statement suggested that issues related to house rent allowance (HRA) were being manipulated by external elements to undermine the credibility of both SEBI and its leadership.

Protesters' demands and potential implications
Disciplinary concerns

The press release from SEBI further fueled the discontent among employees, leading to today's protest outside their office building.

Shriram Subramanian of InGovern Research told ETMarkets, "The timing of their letter to the finance ministry and now this protest indicates that there could be someone instigating them."

There are concerns that if SEBI's management takes disciplinary action against these protesting employees, it could obstruct the regulator's ability to function efficiently and fulfill its regulatory responsibilities.

Buch faces multiple allegations amid protests
Leadership scrutiny

Buch, an IIM Ahmedabad alumnus with a private corporate background, is facing multiple allegations.

She has been accused of misconduct in the Adani probe and labeled "corrupt" by Zee's Subhash Chandra.

The Congress party has also questioned her integrity due to her past roles at ICICI Bank and ICICI Securities. However, Buch has denied all these allegations.

SEBI's response to employee grievances
Official statement

In its press release, SEBI stated that employees demanding a 55% increase in HRA had twisted the narrative to make it a "work culture" issue after their initial protest yielded no results.

The regulator also highlighted that entry-level officers at Grade A receive an annual salary of around ₹36 lakh.

It suggested that the grievances of junior officers may have been misguided by external elements.

Employees' letter to finance ministry
Employee complaints

Approximately 500 of SEBI's 1,000 officers of Grade A and above have signed a letter sent to the finance ministry on August 5.

The letter alleges that Buch's leadership uses "harsh and unprofessional language" toward team members, monitors their "minute-by-minute movement," and has set "unrealistic work targets with changing goalposts."

The employees claim they are subjected to name-calling and shouting by the leadership without any defense from top management.