The Securities and Exchange Board of India (Sebi) has imposed stringent measures to address misconduct and corrupt practices among its staff.
In a notification dated May 6, the markets regulator amended the Sebi (Employees’ Service) Regulation, and the new norms took effect on the same date.
According to the amendment, a competent authority will be able to “direct recovery from an employee of the amount of pecuniary loss caused to the board.” This amount could be deducted from the pay and other dues of the employee.
Action may follow if an employee is alleged to have acted with an improper purpose, in a corrupt manner, or exercised their powers with an improper motive.
Employees who have left the service, retired, or resigned from the board will also fall under the provisions.
“The gratuity payable to an employee may be withheld either in full or in part during the pendency of any proceedings initiated against an employee,” said the notification.
The gratuity will only be paid after the conclusion of the proceedings, subject to conditions.
Legal experts said that the provisions of the Employees’ Service Regulation apply to officials and employees up to the executive director (ED) level, meaning whole-time members and the chairperson are not covered by it.
Some believe the need for such stringent measures arises from recent alleged malpractices at the level of market infrastructure institutions (MIIs), where the regulator had issued orders against key management.
First Published: May 07 2024 | 6:56 PM IST