Sebi, staffers at odds over transfers, promotions and external appointments

Employees allege breach of transfer policy, accuses HR of non-transparency; protests to resume on October 22

Dissatisfaction has arisen among staffers at the Securities and Exchange Board of India (Sebi) over recent transfer orders and the policy in this regard.

A letter on Wednesday from the Sebi Employee Association (SEA) to chairman Ajay Tyagi says the staffers "are collectively feeling let down".

A e-mail from this publication to the Sebi management was not answered.

According to sources, Sebi's human resource (HR) department had on Monday issued transfer orders for about 80 people, or a tenth of the markets regulator's total staff strength. The transfer orders came on the heels of an SEA protest against the promotion policy and opposition to an order of October 4 for the transfer of Manoj Kumar, chief general manger and president of SEA.

In the letter to the chairman, SEA cited a circular dated August 22 last year, on the transfer policy, which it claimed was being breached. According to the policy, the management had to seek the preference of an officer before transferring him, especially when the move was from the Mumbai headquarters to a regional office. In this case, Kumar was being transferred to Delhi as a regional director, without seeking his preference.

Kumar is also an investigative officer in the National Stock Exchange (NSE) co-location matter.

The 80 other officials, too, are being transferred for protesting against Sebi's new promotion policy, issued via a circular dated September 27, said a source. The new policy has reportedly raised the minimum service requirement for a promotion from three years to five.

At loggerheads

• Sebi issues transfer order to about 80 employees on Oct 15

• Employees allege transfers are in contravention of policy

• On Oct 4, Sebi issues transfer order against Chief General Manager Manoj Kumar

• Kumar is heading the SEA and also part of the NSE co-location investigation

• Sebi has not sought employees’ preference before issuing transfers, says SEA  

• Move follows protests from  employees against the new promotion policy 

"An oral assurance was given that the circular shall be kept in abeyance and certain changes made in the policy. However, an order for personal promotion was issued in terms of the new policy. This has led to the apprehension that the oral assurance is not being followed and the HR department has started implementing the said circular," SEA has said in the letter to the chairman.

The letter also criticises the performance review process. "Promotions have been made on the basis of PAR (performance appraisal review) which have been normalised by the HRD. The normalisation process is against all established principles of assessment of performance, as performance is being rated by someone who has no supervisiory role over the officer and has, thus, no capacity to assess his/her performance," goes their letter.

The employee association has also raised the issue of appointment of external executive directors (EDs) in the letter. Last year in April, the SEA had sought a review of the rule on EDs appointment, asking that half be taken from within Sebi. Accordingly, Sebi changed the rule and decided to increase the number of EDs to nine, from eight. Six of them would be staffers and the rest hired laterally or on deputation.

However, the SEA says, "Recently, two advertisements have been issued for the post of ED on contract basis, contrary to the proportion being followed for the appointment of three external and six internal EDs."

"The issues raised indicate that the HR department is taking action against established policy and rules in a non-transparent manner and oral assurances by HR on employees are not being followed. Because of this, employees are collectively feeling let down and would resume their protest from October 22 onwards," SEA added.