The capital markets regulator SEBI has tightened rules to address employee irregularities and corruption.
SEBI has changed the rules that apply to its employees’ services.
In this situation, a competent authority can directly recover the amount from the employee responsible to compensate for SEBI’s economic loss as per the law.
The money can be deducted from the employees’ salaries and other earnings.
As per SEBI (Securities and Exchange Board of India), this action can be taken if an employee is suspected of acting improperly, corruptly, or with corrupt intentions while using their authority.
Employees who have resigned or retired will also be covered under the purview
SEBI, in its May 6 notification, mentioned that the new system will apply to employees who have resigned, retired, or finished their deputation tenure.
The new SEBI rules are now in effect. According to the updated rule, if there are ongoing proceedings against an employee, their gratuity can be held back, either in full or in part.
The employee will receive their gratuity after the proceedings are completed.
Rules should also be tightened for investment advisors
Investment advisors are now required to provide detailed information about their social media presence twice a year.
This information must be provided to a supervisory body appointed by SEBI.
This change will simplify the monitoring of investment advisors’ online activities for the supervisory body. The market regulator issued a circular about this on May 7.
