#MeToo: Sebi mandated disclosures by listed firms, but it lacks them itself

The regulator said in its response to Business Standard's query that information on sexual harassment complaints at Sebi would be made available in future

More than six years after asking companies to provide disclosures on sexual harassment complaints, the stock market regulator has yet to make similar disclosures itself.

An application under the Right to Information (RTI) Act filed by Business Standard revealed that there had been five complaints received as of date, though a year-wise breakup of the same was not provided.

A subsequent request for comment sent to the media communications team provided a year-wise breakup. The regulator recorded complaints in only four of the past 10 years — 2012, 2013, 2017 and 2018. There was no section for making such disclosures in the regulator’s annual report.

Interestingly, none of the complaints to the Internal Complaints Committee (ICC) were proved (see chart 1).

Complaints at Sebi

“It may be mentioned here that after enquiry by the ICC, allegations of sexual harassment have not been established in any of the five complaints,” said a spokesperson in an emailed response.

There were 267 female employees at the end of the 2018 financial year (FY18). There were 262 at the end of FY17, and 263 for FY16. Assuming the data on harassment are also for the financial year, the average number of complaints over these three years works out to around 0.4 per 100 female employees or a rate of around 40 per 10,000 employees.

To its credit, Sebi's rate of registering complaints is higher than that of listed companies under its purview. An earlier analysis of sexual harassment complaints at large listed companies had shown that they registered complaints at the rate of 11 per 10,000 employees. (see chart 2)

Numbers for listed companies:

Studies suggest that these might be significantly underreported. Women are subjected to sexual harassment more often than the complaints suggest. Seventeen per cent of women have faced such issues according to ‘Sexual Harassment at Workplaces in India 2011-2012' from the Oxfam India and the Social and Rural Research Institute.  

Another study suggested even higher figures.

“Around 46.58% of the women suffered mental agony at work as a result of such sexual harassment, while 25.17% were subjected to unwanted physical contact (Sikri, 1999),” said a survey conducted on behalf of the National Commission for Women; mentioned in ‘Sexual Harassment of Women at Workplace’ from authors Rufus D Beulah S  in the October-December 2010 issue of The Indian Police Journal.

“…There are cases of sexual harassment everywhere. Its only that the company doesn’t encourage you to report (such instances)…and its very subtle, the way it is conveyed in the organisation that…if there is sexual harassment, don’t make a big thing out of it, otherwise you can lose your job…”  said Nayreen Daruwalla, programme director for prevention of violence against women and children at the non-profit organisation Society for Nutrition, Education & Health Action (Sneha).

This also seems borne out by data in the government’s fourth National Family Health Survey (NFHS-4). Most women facing sexual violence seek help from their own or their husband’s families. Institutional remedies, including the police, are rarely approached. (see chart 3)

Institutional Sources:

Sebi said in its response to Business Standard’s query that the information would be disclosed in the future.  

“As required under the Act, the ICC at Head Office and at each Regional Office (except one) have forwarded their annual reports for the year 2017 to their respective District Officers. The information will be disclosed in the Annual Report of Sebi from the current financial year onwards,” it said.  

It added that the regulator has an ICC at its head office in Mumbai, and at each of its regional offices, and that steps are being taken to ensure that employees are sensitised to the issue.

“New employees joining at the entry level are made to attend a session on ‘Prevention of Sexual Harassment at Workplace’. A session was also conducted for officers in supervisory roles to sensitise them on the provisions of the Act and to enable them to provide guidance to officers, secretaries and contract staff in their Departments. Similar workshops are also held at the regional offices,” it said.

It is important to let employees know that they have avenues outside the organisation as well, according to N S Nappinai, Advocate, Supreme Court.

“An enabling environment would also involve letting employees know of remedies in law, in addition to internal processes. I hope that they are creating enough awareness programs within their organisation to ensure that victims are aware of remedies through filing of police complaints and courts in addition to the internal processes.  Nothing stops victims from pursuing their remedies independent of the ICC report or to contest it," she said.

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This is the first of a three-part series looking at sexual harassment complaints and their disclosure at financial regulators. The second part will deal with the Reserve Bank of India