Amid the controversy over the Hindenburg Research report, a letter signed by 500 employees addressed to the Central government raised serious allegations of a toxic work culture, such as a hostile work environment, with 'shouting, scolding, and public humiliation' becoming the norm in meetings under the leadership of its chairperson, Madhabi Puri Buch.
The allegations raised by employees, representing nearly half of SEBI's workforce at Grade A level and above, also claimed that they were given unrealistic targets and that a culture of fear has damaged morale within the organisation.
The letter, titled Grievances of SEBI Officers: A Call for Respect, specifically accuses the leadership under Buch of using harsh and unprofessional language during interactions with employees.
It claims that targets set by senior management are unachievable, contributing to high levels of stress and anxiety among staff. The complaint suggests that the focus has shifted from delivering quality work to meeting arbitrary deadlines, resulting in a “panic addition” to SEBI's work rather than meaningful contributions.
In response, SEBI’s management has denied the allegations. A statement issued by the regulator acknowledges that some issues relating to work targets were raised, but claims these have since been addressed.
The format of review meetings, which was a key point of contention, has reportedly been adjusted to alleviate concerns, according to SEBI's official communication. The two unions representing SEBI employees have also backed the management, dismissing the claims as misinformation spread by a small number of disgruntled employees.
Despite the internal pushback, the complaints in the letter suggest deeper issues within SEBI's organisational culture. Employees have expressed dissatisfaction with what they describe as a pervasive atmosphere of mistrust and a lack of respect from the top leadership.
Over the past two to three years, it is claimed, a climate of fear has taken hold within SEBI, with employees reluctant to speak up for fear of retribution. The letter points to incidents of public scolding and humiliation during meetings, leaving even senior officers hesitant to attend discussions due to the toxic environment.
The controversy over SEBI's work culture has come at a time when its chief, Madhabi Puri Buch, is already facing intense scrutiny. Opposition parties, particularly the Congress, have called for her resignation amid allegations of conflict of interest regarding SEBI's inquiry into the Adani Group. Additionally, questions have been raised over Buch’s past ties with ICICI Bank and accusations of corruption have surfaced, further complicating her position.
The letter to the government highlights that while SEBI has successfully integrated cutting-edge technology to enhance work efficiency, the same effort has not been applied to fostering a positive and motivating leadership style. Employees argue that the technological advances have not been matched by improvements in workplace culture, leaving them feeling oppressed by the current leadership.
Last month, US-based short-seller Hindenburg Research alleged that Buch and her husband, Dhaval Buch, held stakes in obscure offshore funds implicated in the Adani money siphoning scandal.