Strict procedures have been implemented by the Securities and Exchange Board of India (Sebi) to deal with employee misbehavior and corrupt activities. The Sebi (Employees’ Service) Regulation was modified by the markets regulator in a notice dated May 6, and the new guidelines became operative on that day.
In accordance with the amendment, a strategic expert authority can possibly “direct recovery from an employee of the amount of pecuniary loss caused to the board.”
“The gratuity payable to an employee may be withheld either in full or in part during the pendency of any proceedings initiated against an employee,” added the notification. The requirements will also apply to former board members who resigned, retired, or left the service.
According to some, the regulator’s actions against key management of market infrastructure institutions (MIIs) stem from suspected malpractices that have occurred recently.
