SEBI Implements Stricter Norms to Combat Employee Misconduct

On 6th May 2024, Securities and Exchange Board of India (SEBI), the capital markets regulator, introduced tougher regulations to address misconduct and corrupt practices among its employees.

Key Points

Recovery Mechanisms: The Board can recover losses from employees through various means, including deducting amounts from their pay and other dues.
Criteria for Recovery: Recovery measures can be initiated if an employee is suspected of acting improperly or corruptly, or if they misuse their powers.
Applicability: The new framework extends to former employees, including those who have resigned, retired, or completed their deputation tenure.
Withholding Gratuity: SEBI has the authority to withhold gratuity payments during ongoing proceedings against an employee, either in full or part.
Conclusion of Proceedings: Gratuity will be disbursed after the conclusion of proceedings, subject to the outcome of the investigation.