Did market regulator Sebi have a 'toxic' work culture? Report says...

The Finance Ministry received a complaint from the officials of Securities and Exchange Board of India (Sebi) who have detailed about the toxic work culture, micromanaging and use of harsh language at the commodities market regulator under the leadership of Madhabi Puri Buch.

“Shouting, scolding and public humiliation have become a norm in meetings,” a report by The Economic Times cited the letter sent by the Sebi officials to the finance ministry on August 6.      

It further accused Sebi leadership of using harsh language, setting unrealistic targets and micromanaging.  

Sebi officials complain about unfriendly employee practices

Sebi has a strength of around 1,000 officers of Grade A and above. Now, a five-page letter, titled – ‘Grievances of Sebi Officers - A Call for Respect’ – which was sent to the Finance Ministry, was signed by about 500 of them.

It is worth mentioning, that it is for the first time in Sebi’s history, officers have raised concerns and complained about unfavourable employee practices.

The Sebi officials mentioned in the letter that they have reached out to the finance ministry after their complaints to the management were not heard.

What officials complained about Sebi to Finance Ministry?

The “core of grievance” of the Sebi officials is the leadership “calling names” and “shouting at them."

The officers pointed out that “unprofessional language is casually used by people at the highest level and the situation has become such that there is no defense from the senior management."

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‘Minute-by-minute movement monitored’

The Sebi officers further complained that their “minute-by-minute movement” is monitored by the leadership.

They went on to say that the management has installed turnstile gates to “monitor the intra-day attendance of employees” to have “complete control of their every movement” and have demanded these be taken down, adding that they pose challenges for employees with visual impairments.  

Responding to this, the Sebi spokesperson said the gates were installed recently. “Based on employee feedback, it was decided to review the requirement after six months in consultation with the employees,” the regulator said.  

‘Unrealistic work targets’

Sebi employees also pointed out of being imposed with “unrealistic work targets with changing goalposts” which has been impacting their mental health and has also thrown work-life balance out of gear.  

As per the complaint letter, the management at Sebi has increased key result area (KRA) targets by 20-50 per cent for the ongoing year and expect its employees to achieve them by December.  

“This is unrealistic and has led to stress and anxiety,” the Sebi officials said.

“Employees are not robots with a knob that one can turn and increase the output,” the letter by Sebi to the Finance Ministry said.  

It further mentioned that the in-house mental health counsellor who used to have “very few” visitors is now “overburdened with employees facing mental health issues”.

Sebi, meanwhile, responded to the report saying, “In respect of the work environment, format of review meetings has been changed. Hence, issues (with regard to) meetings stand addressed.” It also said that the two associations representing Sebi employees have acknowledged these changes via emails dated September 3.

Growing mistrust

The letter further highlighted that there has been “growing mistrust” among Sebi employees and “fear has become the primary driving force in Sebi over the last 2-3 years”.  

The atmosphere has become oppressive, the letter further stated.

“Time and time again it has been spoken that Sebi is adopting best-in-class technology to improve efficiency of work done. However, the senior management seems to conveniently forget to also adopt best-in-class man management, leadership, and motivation methods towards its employees. This method of leadership wherein employees are browbeaten into submission with shouting, using harsh and unprofessional language has to stop,” the letter said.