Sebi Act safeguards interest of employees: U K Sinha

PTI  | Deccan Chronicle

Business, Companies

Sebi employees have expressed concerns over recent CBI searches at three of its members' residences.

Sebi Chairman U K Sinha refers to the Section 23 of the Sebi Act.

Mumbai: Amid concerns among staff about CBI scrutiny in some high-profile cases including in MCX matter, Sebi Chairman U K Sinha today assured that the employees need not worry as their interest is safeguarded under the Act governing the regulatory body.

Asked by reporters here after a board meeting of Sebi, Sinha also expressed his displeasure at the media coverage of the recent incident of CBI conducting searches at the premises of some Sebi officials as part of their probe into MCX case.

"I am the victim here," Sinha said, while saying that he was not happy with the way media has reported the matter. He also said that Sebi employees need not worry as there are provisions in the Sebi Act to safeguard their interest.

He was referring to Section 23 of Sebi Act under which no external agency should be able to seek depositions from Sebi officials without the consent of central government and Sebi Chairman.

The Sebi Employees' Association (SEA) has reportedly expressed concerns over the recent CBI searches at three of its members' residences.

In a letter to the Sebi Chairman, the body representing over 700 officials reportedly said these 'selective' searches were "shocking and disturbing" as the matter was years-old and involved decision-making at the highest level.

The association is said to have sought intervention by the Sebi board to ensure that they can discharge their duty without any fear of selective scrutiny.

As per reports, the Securities and Exchange Board of India (Sebi) also plans to seek clarity from the Finance Ministry on the CBI scrutiny of its officers in various cases.

In the past also, CBI had registered a PE (Preliminary Enquiry) against former Sebi Chairman C B Bhave in the matter concerning grant of approval to MCX Stock Exchange, but later decided to close the case after the agency came to a conclusion that his role was not of serious nature to warrant registering a case.

Earlier this week, CBI arrested Jignesh Shah, who had founded MCX, in the case of alleged cheating and suppression of facts in getting Sebi extension to MCX Stock Exchange to continue as a stock exchange in violation of norms.