SEBI comes out with stringent rules to tackle misconduct, corrupt practices 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 market 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.

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

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

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

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

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