SEBI employees stage protest, call for Madhabi Puri Buch’s resignation

In an unprecedented display of discontent, SEBI (Securities and Exchange Board of India) employees staged a protest at the market regulator’s Mumbai headquarters on Thursday, calling for the resignation of chairperson Madhabi Puri Buch. The demonstration, which lasted for several hours, followed a letter to the finance ministry by a section of SEBI employees, accusing the organisation's leadership of fostering a toxic work culture and imposing unrealistic performance targets.

The protest also follows a SEBI press release dismissing the employees’ grievances as “misguided by external elements”, prompting widespread frustration among staff. According to reports, the letter — written by a faction of disgruntled employees — painted a picture of a work environment marked by fear, public humiliation, and mistrust.

While SEBI refuted these allegations, claiming they are part of a strategy by employees to gain leverage for more benefits, the unrest signals deeper issues within the organisation. The regulator emphasised that its officers are well-compensated, with entry-level Grade A officers earning Rs 34 lakh per annum. SEBI further noted that meeting employees' new demands would add an extra Rs 6 lakh per annum per officer, a considerable financial burden.

But the dispute goes beyond monetary compensation. The crux of the employees’ complaints revolves around what they describe as an “unrealistic KRA (key result area) system” that has been ramped up by as much as 50 per cent in some departments. According to the letter, this has created undue stress and anxiety among employees, resulting in what they term “panic addition” rather than “value addition”.

The employees also alleged that over the past few years, the SEBI workplace has become increasingly oppressive, with fear becoming the primary motivator. The letter described a culture where scolding, shouting, and public humiliation have become commonplace during meetings.

In its rebuttal, the SEBI leadership pushed back, asserting that the grievances were a smokescreen for underperformance and inefficiency within the workforce, pointing to instances of misreporting KRA achievements, shuffling of files to avoid decision-making, and adjusting appraisal scores for underperforming officers to make them eligible for promotion as evidence of deeper problems. SEBI also claimed that significant reforms had been implemented in the past few years to improve efficiency and ensure that employees were technologically updated.

At the centre of this growing conflict is chairperson Buch, whose leadership style has come under increasing scrutiny. A highly qualified professional, Buch holds a degree in mathematical economics and an MBA from IIM-Ahmedabad.

Her extensive career in finance includes stints at ICICI Bank, ICICI Securities, and a leadership role at private equity firm Greater Pacific Capital. However, a front-page report in Mint on Thursday, 5 September, raised questions about her tenure at ICICI Bank, suggesting an overlap between her role there and her position at Greater Pacific Capital from 2011-13, sparking concerns over potential conflicts of interest.

While these revelations have added to the mounting pressure on Buch, the immediate issue remains the growing unrest among SEBI employees. Their letter to the finance ministry underscored two key points of dissatisfaction: unrealistic targets and a lack of trust and respect from senior management.

Buch, who became SEBI's first female chairperson in 2022, has yet to respond to the demands for her resignation publicly. The ministry of finance has also remained silent, even as tensions within SEBI continue to rise.

As SEBI grapples with this internal crisis, the larger question looms — can the regulator address the underlying grievances of its employees, or will it continue to dismiss them as attempts at leveraging better benefits? For an organisation tasked with safeguarding the integrity of India’s financial markets, the need for introspection and reform has never been more critical.

This protest may only be the beginning. How SEBI’s leadership handles this situation in the coming days could set the tone for its relationship with employees moving forward. It remains to be seen whether these demands for change will be addressed or brushed aside in favor of maintaining the status quo.