Sebi says unprofessional work culture claims 'misplaced'

Sebi on toxic work culture: Securities and Exchange Board of India (Sebi) said on Wednesday that claims of an unprofessional work culture at its offices were "misplaced", responding to reports in the local media earlier in the day.

In a letter to the federal finance ministry last month, some employees of the market regulator said that there was "immense pressure" at the regulator, resulting in a "stressful and toxic work environment".

The letter reported by Indian newspaper Economic Times has been reviewed by Reuters.

In a press statement, SEBI said the claims stemmed from demand of higher rental allowance and attempts to stop misreporting of targets achieved and delays in taking decisions.

Some "outside elements" instigated its employees to believe that they should not be required to have high standards of performance and accountability, SEBI said in the statement, without disclosing any details about the elements.

Separately, SEBI Chairperson Madhabi Puri Buch has faced allegations of conflict of interest from US short-seller Hindenburg Research and the country's opposition political parties, which have demanded her resignation.

Hindenburg has alleged that Buch and her husband previously held investments in offshore funds also used by the Adani Group, which is being investigated by the regulator.

Buch has denied these allegations.

Earlier this week, the main opposition Congress party alleged that Buch continued to earn income from a regulated entity - ICICI Bank - where she worked before joining SEBI.

ICICI Bank denied this. Buch and SEBI have not commented.

In its press release, SEBI said it was "committed to serving the complex market ecosystem to a high level of transparency, and responsiveness".