Nearly 500 employees of the Securities and Exchange Board of India (Sebi) staged a protest outside the capital markets regulator’s office on September 5. This is in continuation of their complaint against the harsh work culture and unrealistic targets to the Finance Ministry and a fallout of the subsequent press statement from Sebi that refuted these complaints. In the protests yesterday, as per media reports, the employees even demanded Sebi Chief’s resignation.
This demand however was not part of the initial requests from the staff. BW Businessworld has access to the letter, and here are the excerpts that indicate the extent of their concerns and represent this side of the story.
In A Nutshell
The formal complaint to the Ministry, titled ‘A Call for Respect’, highlights key issues ranging from workplace mistrust and unrealistic performance expectations to deteriorating mental health due to increased stress levels.
Known for its pivotal role in maintaining the integrity of India’s securities market, Sebi’s internal unrest is a concern beyond just its offices. As Sebi senior management looks to address the issues, here is a recap of the problems.
Employees claim that a shift in leadership’s approach has led to a “toxic” environment. “In the name of efficiency, management has introduced regressive policies that have left employees overworked and undervalued,” states one section of the letter.
Top officials, without being named, quoted in the media that “all the teams are trying to address the concerns with the help of the HR department. There will soon be a resolution”.
The employees’ initial demand essentially was to ask for a dialogue with senior officials and request more humane management practices, emphasising that the issue is not about their ability to meet targets but about the growing lack of respect and trust within the organisation. As one excerpt reads, “This is not about ambition or capability—it’s about respect”.
Excerpts From The Letter ‘A Call for Respect’
As per the letter, the final trigger was an email asking employees to update their MIS (management information systems) or allowances would not be approved.
The letter stated: Notwithstanding the above, an email was circulated to the employees stating that they are needed to update their individual MIS online within two days, failure of which will lead to non-approval of allowances. Although this event only acted as a trigger for the already present discontent and frustration among employees, it has been wrongly and dishonestly portrayed that employees are against MIS and are only fixated on allowances. Nothing can be farther from the truth.”
The letter goes on to explain the extent of the concerns.
“However, disheartening it may sound, in recent times, there has been a tectonic shift in the approach of the top management in the way it approaches its employees and behaves with them.”
One point quoted: “…Sometimes it is the point-wise KRA systems with unrealistic targets with changing goalposts, other times it's the monitoring of minute-by-minute movement of Sebi employees. At one time, the employees will be called names, and at other times they would be shouted at by the leadership with no defense from top management.”
Indicating the pressure on other departments that should have addressed employee concerns, the letter stated: “Further, it is being regularly seen (including in the previous town hall meeting) that an effort is being made to pit employees against some departments, such as HRD and ITD.”
Around 400 Sebi Employees Resort To Protest, Demands Sebi Chief Resignation
The Problem Areas
The letter has cited two root causes of the issues.
The first root cause is said to be “mistrust and lack of respect shown at the highest level towards employees”.
The letter explained: “This is at the core of all the grievances faced by Sebi employees today. It’s not a secret that gradually over the last 2-3 years, fear has become the primary driving force in Sebi. Unprofessional language is casually used by people at the highest level. Shouting, scolding, and public humiliation have become a norm in meetings. The strain is such that even some grade A-C officers, even officers in higher grades, are afraid to voice their concerns in meetings for fear of the unquestionably bad behavior of people at the highest level.”
The letter details much more on all of these areas.
The second cause is around expectations. The letter said: “Unrealistic KRA targets: Despite struggling and toiling hard to achieve KRA targets for last year, KRA targets for the year were created anywhere around 20%-50% for some departments. Employees were not consulted with and had no say in what can be achieved, leaving them demotivated and exhausted.”
Whether these grievances will result in meaningful changes within Sebi remains to be seen. However, what is clear is that the organisation's leadership must act swiftly, as the continued discontent risks undermining its broader mandate in regulating India’s financial markets.
Read The Full Complaint Letter Sent To The Ministry Below
Grievances Of Sebi Officers – A Call For Respect
1. Sebi, as we all know, is one of the premier securities market regulators in the world. Sebi, what it is today, is nothing but the result of years of sweat and blood that its employees have put into the growth of the organisation. As a result, we have hundreds of achievements under our name. This has been achieved by the direction of top leadership and the efforts of its employees with mutual trust and respect, all along.
2. However, disheartening it may sound, in recent times, there has been a tectonic shift in the approach of the top management in the way it approaches its employees and behaves with them.
3. In the name of increasing the efficiency of an organisation which was already working as well-oiled machinery, the management started to overhaul all the systems and replaced them with regressive policies and frameworks. Sometimes it is the point-wise KRA systems with unrealistic targets with changing goalposts, other times it's the monitoring of minute-by-minute movement of Sebi employees. At one time, the employees will be called names, and at other times they would be shouted at by the leadership with no defense from top management.
4. This kind of work environment in recent times has resulted in immense pressure on the employees of Sebi and has resulted in a stressful and toxic work environment. The Sebi which used to be a place where people used to work joyously and efficiently has become a furnace of unrealistic KRA point achievement.
5. The same could be evidently correlated from the fact that the mental health counselor for employees at Sebi, who earlier used to have very few visitors, is now overburdened with employees facing mental health issues. As a result, HRD has increased the number of visit days and had to open up unlimited mental health counseling for employees as well.
6. The employees and employees’ associations have on various occasions informed the top management, Chairperson, and HRD through written as well as informal communications about the issues and grievances being faced by the employees on a regular basis. However, no decisive measures have been taken in that regard so far.
7. Notwithstanding the above, an email was circulated to the employees stating that they are needed to update their individual MIS online within two days, failure of which will lead to non-approval of allowances. Although this event only acted as a trigger for the already present discontent and frustration among employees, it has been wrongly and dishonestly portrayed that employees are against MIS and are only fixated on allowances. Nothing can be farther from the truth.
8. While the introduction of an automated MIS is much appreciated, the threat of withholding claims for non-compliance was not only unjustifiable but also frankly petty on the part of such people, at the highest level. That diktat only showed how little they thought of the employees and led to the outburst of frustration that has been brewing for the last 2-3 years.
9. Further, it is being regularly seen (including in the previous town hall meeting) that an effort is being made to pit employees against some departments, such as HRD and ITD. This approach by some only seeks to destroy the long-standing culture of Sebi. Both these departments are working under immense pressure, and all the employees of Sebi empathise with them very well. But the root cause of employees’ discontent is not those departments but the actual decision-makers at the highest level. These departments are only made a scapegoat when conversations arise.
10. In addition to the above, the officers of Sebi unequivocally denounce any link to media articles published in the last couple of days. We believe in raising our grievances and concerns in a respectful and professional manner. Having said the above, we are highly disassociated with the statements made by employees' associations to media that the grievances pertain only to a few deprived employees. This statement is not only inaccurate but dishonest, considering that a large share of grievances is shared by the employees. The informal meeting called on Thursday by SEA itself was an effort to understand the grievances of the wider workforce.
11. Although employees are aggrieved with many practices of the senior management, we have never raised our concerns formally for many years. However, gradual shifts in the approach of the top leadership in the last 2-3 years and the resultant actions have led to frustration. Officers in higher grades also experience, relate to, and empathize with these concerns, however, some of them have chosen not to express their concerns vocally for fear of vindictive behavior from people at the highest level.
Root cause 1: Mistrust and lack of respect shown at the highest level towards employees
12. This is at the core of all the grievances faced by Sebi employees today. It’s not a secret that gradually over the last 2-3 years, fear has become the primary driving force in Sebi. Unprofessional language is casually used by people at the highest level. Shouting, scolding, and public humiliation have become a norm in meetings. The strain is such that even some grade A-C officers, even officers in higher grades, are afraid to voice their concerns in meetings for fear of the unquestionably bad behavior of people at the highest level.
13. 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 have conveniently forgotten to also adopt best-in-class man-management, leadership, and motivational methods towards its employees.
14. This method of leadership, wherein employees are browbeaten into submission with shouting, scolding, and unprofessional language, has to stop. This sort of behavior is unbecoming for a professional organisation like Sebi.
15. This brings to light the aspect that not only officers required feedback on how to improve, even senior officers need feedback on where they are lacking in their management and leadership skills. This can be achieved through a 360-degree review mechanism. Past feedback was only one-sided, with employees required to hear what they needed to improve, but no feedback or evaluation was provided for the leadership.
Swing Barriers:
16. One of the ways mistrust towards employees has surfaced is the installation of swing barriers to monitor intra-day attendance of employees. Many private organizations are moving away from even biometric attendance systems to promote a positive work culture and showcase trust in their employees. In contrast, Sebi is adopting a highly discouraging Geo-tagging-related trend.
17. Although that proposal was later scrapped, it was replaced with an apparently toned-down version of it (swing barriers), spending significant amounts on the installation. HRD in its office intimation dated July 24, 2024, categorically mentioned that the swing barriers were installed for monitoring intra-day attendance.
18. Unfortunately, this entire exercise showed to employees the complete and utter lack of trust that people at the highest level have towards their own employees and also showed that they want to be in complete control of every movement of employees. Further, swing barriers pose greater challenges for employees with visual impairment.
19. Shouldn’t the focus be on the work getting done? This objective is anyway being achieved with the monitoring of MIS and regular review meetings being conducted by the management.
20. In such a scenario, why is there a need to install swing barriers to accomplish the above objective? It is highly unfortunate that people at the highest level are stuck in the 1950s when Theory X was prevalent and assumed that employees are not ambitious, not self-motivated, and avoid work whenever possible.
21. Sebi is not a factory, it is an intellectual organization that has succeeded solely because of its employees being self-motivated, committed to the quality of work, and being responsible. Installing swing barriers was an insult to the employees of Sebi and is communicated to us in unequivocal terms the perspective of people at the highest level—that “we don’t trust you, and we don’t trust your DCs/CGMs/EDs to effectively manage you.”
Demands/Request:
22. Withdrawal of office intimation dated July 24, 2024 (pertaining to intra-day attendance) with immediate effect. Removal of swing barriers within a month.
23. Mandatory requirement for all leadership roles to be provided training and certification programs in modern human resource management methods.
24. Introduction of 360-degree review in APAR effective from FY 24-25.
25. Senior management to acknowledge that management standards were not up to the level for the past 2-3 years and an assurance that every employee will be treated with higher professionalism and with courtesy towards not just grades A-C officers but all staff across levels.
Root cause 2: Unrealistic KRA targets
26. Despite struggling and toiling hard to achieve KRA targets for last year, KRA targets for the year were created anywhere around 20%-50% for some departments. Employees were not consulted with and had no say in what can be achieved, leaving them demotivated and exhausted.
27. Further, KRA targets are not finalized in April of a financial year; the management takes the first quarter to finalize the same. Moreover, this year it was told that the KRAs shall be achieved by December of this year. This clearly shows that the senior management is living in another parallel universe where output of employees can be increased multifold overnight.
28. First and foremost, working this way hurts the quality of work done by employees. Sebi is not a sales organization where the only objective is to surpass the target achieved last year. The work done at Sebi impacts lives of so many people in this country, working frantically to only achieve unrealistic targets to protect oneself from the wrath of people at the highest level is a disservice to Sebi and the people of this nation.
29. Secondly, this creates stress and anxiety in employees who bear the brunt of all the work that is pushed onto them. It is no secret that in many departments there is no value addition in middle and senior management but only panic addition. The officers in grades A-C have to deal with all this and are still expected to complete all targets diligently and within unrealistic timelines.
30. Many employees work overtime and come on weekends to somehow manage work. Officers who live far away take files with them so that they can work from home after office hours and weekends. Such officers don’t care about the late-sitting claims that they are letting go of; they are self-motivated and responsible to recognize that their focus should be on getting work done. However, it seems like people at the highest level have taken the selfless work ethic of officers in grades A-C for granted.
Demand/Request:
31. Sebi to work with realistic KRA targets keeping in mind available resources.
32. There has to be a dialogue and collaborative approach before finalizing employee-related changes. In addition to the regular comments sought from SEA, HRD should conduct regular surveys of all employees of Sebi and conduct separate meetings with SEA members to enable communication on specific grievances. This can help in getting feedback and understanding the ground-level issues faced by employees.
33. While Sebi is working to improve conditions for exams taken by officers, there is a rising distrust among employees that needs to be addressed. It is vital that people at the highest level acknowledge the growing discontent and consider strategic approaches to achieve compliance and harmony.
34. While many of the management’s efforts are highly appreciated, it is crucial for management to also consider the growing discontent among employees. We are all part of the Sebi family, and many of us will spend our entire careers at Sebi. Success is our shared priority, and fostering a positive work culture and high employee morale will lead to significant long-term benefits for the organization.
“Baat hasraton ki nahi, baat izzat ki hai,
Baat kaam ki nahi, par karane ke tareege ki hai,
Humne nahi chaha tha ke baat is mod pe aaye,
Par ab baat humse hamara Sebi cheen lene ki hai.”
