Mumbai/IBNS: A section of employees of the Securities and Exchange Board of India (SEBI), the regulatory body for securities and commodity market in the country, on Thursday (Sept 5) staged a protest outside the regulator's headquarters in Mumbai demanding the removal of the watchdog's Wednesday statement and the resignation of SEBI chief Madhabi Puri Buch.

The regulator's assertion that its staff are being misguided by ‘external forces’ angered the resentful employees further, leading them to hold a silent protest outside the headquarters under the media glare, reports The Economic Times.

SEBI, on Wednesday (Sept 4), refuted claims of toxic and unprofessional work culture at its offices, citing high employee standards and condemning few ‘external elements’ behind employee protests.

The market regulator also said in its statement that complaints of ‘public humiliation’ at its offices were “misplaced” and undermined the institution's and its leadership's credibility.

SEBI has said that its employees demanding a 55 percent hike in house rent allowance (HRA), reportedly twisted the narrative to make it a "work culture" issue after their earlier protest yielded no result, reports Hindustan Times.

Pointing out that entry-level officers at Grade A are paid a salary of Rs 36 lakh annually, the regulator said the grievances of junior officers have been misguided, perhaps by external elements.

"SEBI apprehends that the junior officers have been receiving messages from external elements outside their group, effectively instigating them to 'go to media, go to the Ministry, go to Board', perhaps to serve their own purpose," the regulator said.

"In fact, the letter of August 06, 2024, was not sent by the SEBI employee associations to the Government (and a section of the media)," it added.

On the other hand, in a letter to the Union Ministry of Finance in August, SEBI employees said "immense work pressure" at the market regulator resulted in a "stressful and toxic work environment."

Some media houses accessed the SEBI staff's letter to the finance ministry dated August 6, where the regulator's officials wrote, “Shouting, scolding and public humiliation have become a norm in meetings.”

The Economic Times reported that there were fears that if SEBI's management takes disciplinary action against the protesting employees, it could affect the regulator's ability to function efficiently to fulfil regulatory responsibilities.

The parliamentary Public Accounts Committee (PAC), the parliamentary watchdog for government spending, will look into allegations against SEBI chief Buch and it is likely to summon her later this month, as reported by Economic Times.