The Securities and Exchange Board of India (SEBI), one of the country’s most significant commodities market regulators, is currently facing serious allegations of a toxic work environment. On September 5, SEBI’s headquarters in Mumbai’s Bandra-Kurla Complex turned into a protest ground. Notably, around 500 employees gathered to voice their concerns. Their grievance? A toxic work culture marked by hostility. The protesting employees claim that under Chairperson Madhabi Puri Buch’s leadership, shouting, scolding, and public humiliation have become standard practices in meetings. These SEBI work culture issues came to light after a leaked letter came to light. The letter to the Finance Ministry revealed the staff’s struggles with micromanagement and other grievances.
Leadership controversy at SEBI
A five-page letter titled “Grievances of SEBI Officers—A Call for Respect” outlines serious concerns about the current leadership under Chairperson Madhabi Puri Buch. The letter accuses Buch of using “harsh and unprofessional language” toward team members. It also alleges the monitoring of their “minute-by-minute movement” and setting “unrealistic work targets with shifting goalposts.” In the name of boosting efficiency, the management has implemented system overhauls and introduced regressive policies. These policies have taken a toll on employees’ mental health and disrupted their work-life balance.
“Time and time again it has been spoken that SEBI is adopting best-in-class technology to improve efficiency of work done. However, senior management seems to conveniently forget to adopt best-in-class man management, leadership, and motivation methods for 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.
SEBI employs around 1,000 officers at Grade A and above (assistant manager level and higher), and approximately 500 of these officers signed the letter sent to the Finance Ministry on August 6. It is perhaps the first time in SEBI’s history that officers have publicly raised concerns about such hostile employee practices. After their complaints to the management went unheard, the officials felt compelled to bring the issue to the Finance Ministry’s attention.
SEBI work culture issues: What the letter reveals about toxic work practices at SEBI
The main complaint from SEBI officials centres around the leadership’s unprofessional behaviour. This behaviour includes name-calling and shouting. Officers reported that senior management frequently employs unprofessional language. That creates an environment where there is no defence against such behaviour. They criticised the leadership for browbeating employees into submission and using aggressive and unprofessional communication. They emphasised the need to end this demeaning practice.
But the letter didn’t stop there. It highlighted several other issues:
Overbearing surveillance and distrust
SEBI officials complained that their every move is tracked. Moreover, the management has installed turnstile gates to monitor daily attendance. They argued these gates show a lack of trust and create challenges for employees with visual impairments. The use of swing barriers for attendance tracking further demonstrated a distrust in employees. That is because many private companies have moved away from such systems to foster a positive work culture.
The letter criticised senior management for holding onto outdated beliefs from the 1950s. It implies that employees are not self-motivated. The letter suggested that the use of swing barriers and minute-by-minute monitoring insults employees. It also reflects poorly on management’s trust in them.
Unrealistic KRA targets
SEBI employees have raised serious concerns about “unrealistic work targets with constantly shifting goalposts.” These targets were increased by 20-50% for the current year and are expected to be met by December. It has affected employees’ mental health and disrupted their work-life balance. The letter highlights that employees are not machines that can increase output by turning a knob.
SEBI work culture issues impacting mental health
The toxic environment has reportedly decreased morale and disrupted the work-life balance of SEBI officials. The in-house mental health counsellor, who previously had only a few visitors, is now overwhelmed with employees seeking help.
SEBI has responded by stating that it has revised the format of review meetings to improve the work environment. The organisation added that the two employee associations have acknowledged these changes in emails dated September 3.
Immense work pressure
The letter describes an oppressive work atmosphere at SEBI. Employees face intense pressure, leading many to work overtime and weekends just to keep up. Some officers who live far from the office even take files home to work outside regular hours.
The letter also points out that employees are suffering from high levels of stress and anxiety due to the overwhelming workload. It criticises senior and middle management for adding to the pressure without providing any real value, describing their presence as “panic addition” rather than meaningful support.
SEBI work culture issue: SEBI’s response misses the point
On the evening of September 4, SEBI released a five-page statement denying allegations of a toxic and unprofessional work culture. The market regulator claimed that external influences misled junior officers. The external influence allegedly encouraged them to bring their grievances to the media, the Finance Ministry, and the board, possibly for their benefit.
By dismissing the employees’ association’s claims as incorrect and dishonest, SEBI essentially downplays the genuine concerns of its staff. The statement accuses external influences of causing unrest, yet it fails to address the specific “toxicity” issues that employees have raised.
In SEBI’s case, HR did not establish a supportive work environment where employees feel comfortable voicing their concerns. Instead of creating a space where organisations should address issues fairly and transparently, HR allowed a culture of fear and distrust to develop.
The main complaint from SEBI officials was that leadership frequently used harsh language, including name-calling and shouting, which created a hostile work environment. HR did not intervene or address these issues, allowing aggressive and demeaning communication to continue unchecked.
This failure to handle grievances properly meant that concerns grew unchecked, leading to a toxic atmosphere and further dissatisfaction among staff.
The final thoughts
Despite some changes in review meetings, SEBI’s response seems inadequate in addressing the core issues and improving the overall work culture. SEBI’s toxic work culture allegations show that, despite companies talking a lot about respect and fairness, the reality can be very different. This situation highlights the difference between what companies say about respecting and supporting their workers and what they actually deliver.
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