SEBI strengthens regulations to deal with employees' corrupt behaviour

The market regulator, SEBI, has tightened regulations in response to its employees' corrupt practices. It has changed the policies controlling its employees' services in response to this. As a result, a competent authority may pursue payment from the concerned employee directly in order to make up for any monetary losses SEBI may have incurred as a result of the law.

This sum may be deducted from the employees' pay and other benefits. According to SEBI, this step can be taken when an employee has allegedly acted for an improper purpose or in a corrupt manner.

SEBI, in its notification dated May 6, said that the new system will also be applicable to those employees who have resigned or retired or have completed the tenure of deputation. Under the amended rule, during the pendency of any proceeding initiated against an employee, the gratuity payable to the concerned employee can be withheld in whole or in part.

SEBI on Wednesday released a format for periodic standardized reporting to provide information related to the activities of investment advisers. In this, consultants have also been asked to inform about their internet media accounts.

Currently, the 'Investment Adviser Governance and Supervision Body' (IASB) seeks information from investment advisers on an ad-hoc basis. This body is recognized by SEBI for the administration and supervision of investment advisors.