Sebi lays out stringent rules to address employee misconduct, corrupt practices.

Capital markets regulator Sebi has laid out stricter norms to tackle employee misconduct and corrupt practices. Amending the rules governing employee services, the market regulator said the competent authority “may recover the amount of pecuniary loss incurred by the Board (Sebi) directly from the employee through any means available to the Board under law”. .

This amount can be recovered from salary and other amounts paid to employees.

This action may be taken if you suspect that an employee has acted for an improper purpose or in a corrupt manner, or has exercised his or her powers with corrupt motives.

In a notification dated May 6, Sebi said the new framework will also apply to employees who have resigned or retired or completed their deputation term. The new regulations came into effect from the same day.

It further stated that any gratuity payable to an employee may be withheld in whole or in part pending the proceedings initiated against the employee. He added that gratuity will be paid to the staff after the procedure and will depend on the decision of the procedure.