Sebi suspends senior officer; chairman signals zero tolerance on misconduct

Sebi has suspended a general manager over alleged misuse of position, with Chairman Tuhin Kanta Pandey stressing that the regulator will act firmly against any egregious behaviour by its staff

The Securities and Exchange Board of India (Sebi ) has suspended a general manager from its Corporation Finance Department (CFD) in a disciplinary action.

 

According to sources, the suspension, ordered on Friday, relates to the alleged misuse of official position in connection with an SME matter.

 

When queried, Chairman Tuhin Kanta Pandey said  the regulator takes strict action against any instance of “egregious behaviour” by its employees.

 

Pandey said that while the case is still at a preliminary stage, the available evidence was “egregious enough” to warrant immediate disciplinary action.

 

“I would say that the majority of Sebi officials are very strong on ethics and discharge their duties well. But whenever any such egregious behaviour comes to our notice, it is also our responsibility to act with a stringent hand,” he said.

 

 

Pandey underlined that the regulator must uphold high standards of integrity internally, just as it expects compliance and ethical conduct from market participants. Failure to act decisively on credible evidence, he added, could discourage officers who perform their roles with integrity.

 

“It is important that in any such case, we get to the bottom of the matter. We have a robust system in place to ensure due process — natural justice is followed, charges are properly framed, and the officer concerned is given a full opportunity to respond,” Pandey said.