Sebi comes out with strict rules to tackle misconduct by employees

Capital markets regulator Sebi has put in place stricter norms to tackle any misconduct and corrupt practices by its employees.

Amending rules governing its employees' services, the markets regulator said that a competent authority can "direct recovery from an employee of the amount of pecuniary loss caused to the Board (Sebi) by all means available to the Board under the law".

This amount could be recovered from the pay and other amounts due to the staffers.

This step can be taken if an employee is allegedly acted for an improper purpose or in a corrupt manner or exercised his/her powers with corrupt motive.

In its notification dated May 6, Sebi said that the new framework would be also applicable to those employees who have resigned or retired from the services or have completed the tenure of deputation. The new rules have been made applicable from the same date.

It, further, said, the gratuity payable to an employee may be withheld either in full or part, during the pendency of any proceedings initiated against an employee.

The gratuity will be paid to the employee after the conclusion of the proceedings, subject to the decision of the proceedings, it added.