The Securities and Exchange Board of India (SEBI) has refuted allegations of a "toxic work culture" raised by a group of its officials. The market regulator has attributed these complaints to the employees' dissatisfaction with their house rent allowance (HRA) and other benefits.

In a statement issued in response to the allegations, SEBI clarified that the employees’ demands for a significant increase in HRA were “misguided by external elements”. The regulator emphasized that SEBI officers are already well-compensated, and the current salary structure for entry-level officers at Grade A is highly competitive, even compared to the corporate sector.

SEBI also dismissed the claims made in an anonymous letter sent to the government. The regulator stated that the letter was not sent by any SEBI employee associations.

The market regulator accused a group of protesting employees of intentionally framing the issue as a “work environment” concern to gain bargaining power and secure more benefits. 

SEBI denied the allegations of an unprofessional work culture, stating that such claims were misplaced. 

The regulator cited instances where officers had been held accountable for under-pitching their processing capabilities, misreporting the status of key result areas (KRAs), and avoiding decision-making by shuttling files between departments.

The market regulator also highlighted that employees had demanded a 55% increase in HRA and other benefits, including automatic promotions without interviews. 

SEBI emphasized that the KRAs were reviewed and reaffirmed by multiple levels of management, and only minor changes were made to a few departments.

The regulator concluded that the employees were likely misled by ‘external elements’ and were primarily concerned about their HRA allowances.

What employees had mentioned in the letter?

The employees, in their letter – titled ‘Grievances of Sebi Officers-A Call for Respect’, said the leadership uses “harsh and unprofessional language"” toward team members, monitors their "minute-by-minute movement" and imposes “unrealistic work targets with changing goalposts”, the letter says. 

This has impacted mental health and thrown work-life balance out of gear, the letter said. 

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