SEBI officials accuse leadership steered by Madhabi Buch of ‘toxic, humiliating’ work culture: Report
Sep 4, 2024
In a letter titled 'Grievances of Sebi Officers-A Call for Respect', Sebi officers have alleged that the leadership, under the guidance of Madhabi Buch, employs "harsh and unprofessional language"
Troubles mount for Sebi chief Madhabi Buch: In an unprecedented move, officials from the Securities and Exchange Board of India (Sebi) lodged a complaint with the finance ministry on August 6, alleging that the regulator's leadership has created a toxic work environment.
The letter, which ET has reviewed, said, "Shouting, scolding and public humiliation have become a norm in meetings."
This revelation comes at a time when Sebi chairperson Madhabi Puri Buch is facing allegations of conflict of interest regarding the regulator's inquiry into the Adani Group.
The Opposition has also raised questions about the compensation she received from her previous employer, ICICI Bank. On Tuesday, Zee Group founder Subhash Chandra accused Buch of corruption. Both Buch and ICICI Bank have denied any wrong doing.
What SEBI employees have said
In response to the complaint, Sebi said that the issues with employees have been resolved. In an email, the regulator said, "The issues referred in your mail have already been addressed by Sebi."
Sebi further added, "Engagement with employees for resolution of their issues is a continuous process." ET had sent queries to Sebi on September 1.
The regulator employs approximately 1,000 officers of Grade A and above (assistant manager and above), and half of them, around 500, have signed the letter. The finance ministry did not respond to the financial daily’s queries regarding the matter.
In the letter titled 'Grievances of Sebi Officers-A Call for Respect', the officers allege that the leadership, under the guidance of Buch, employs "harsh and unprofessional language" when communicating with team members, closely monitors their "minute-by-minute movement", and sets "unrealistic work targets with changing goalposts".
This is possibly the first instance in Sebi's history where employees have raised concerns about unfriendly work practices. Officials have said that these issues have taken a toll on their mental health and disrupted their work-life balance. The officers decided to approach the finance ministry after their complaints to the management went unheard.
According to the five-page letter, the management has introduced regressive policies and overhauled systems under the guise of increasing efficiency. The officers' primary grievance is the leadership's use of derogatory language and their tendency to shout at employees.
They state that "unprofessional language is casually used by people at the highest level" and that there is "no defence from the senior management" in such situations.
The officers also mention that many employees, including those in higher positions, have refrained from voicing their concerns due to the "vindictive nature of people at the highest level".
While Sebi is working to improve conditions for external stakeholders, the letter highlights a "growing mistrust among its employees" and states that "fear has become the primary driving force in Sebi over the last 2-3 years". The letter says that the atmosphere within the organization has become oppressive.
The letter says that while Sebi repeatedly claims to adopt cutting-edge technology to enhance work efficiency, the senior management appears to overlook the importance of implementing best practices in employee management, leadership, and motivation.
The letter demands an end to the leadership approach where employees are intimidated into compliance through shouting and the use of harsh and unprofessional language.
In response, the regulator said that modifications have been implemented. Sebi mentioned that the format of review meetings has been altered, addressing the concerns related to meetings. The regulator added that the two associations representing Sebi employees have acknowledged these changes through emails dated September 3.
The Sebi officers' letter mentioned that the management has installed turnstile gates to "monitor the intra-day attendance of employees" and have complete control over their movements.
They demanded the removal of these gates, highlighting the challenges they pose for visually impaired employees. Sebi responded by stating that the gates were recently installed and, based on employee feedback, a decision was made to review the requirement after six months in consultation with the employees.
The Sebi officers also raised concerns about the management increasing key result area (KRA) targets by 20-50% for the current year, expecting employees to achieve them by December. They deemed these targets unrealistic, leading to stress and anxiety among employees.
“Employees are not robots with a knob that one can turn and increase the output,” the letter said. It also mentioned that the in-house mental health counsellor, who previously had few visitors, is now overwhelmed with employees facing mental health issues.
In response, the Sebi spokesperson said that KRAs were established after consultations and thoroughly reviewed with all departments following the employees' concerns.
The spokesperson added that three to four levels of management in each department have reaffirmed the KRAs as reasonable. Minor adjustments have been made in a few departments, according to Sebi.
[The Times of India]
