For this, SEBI has amended the rules governing the services of its employees.
New Delhi:
Capital market regulator SEBI has tightened the rules to deal with irregularities and corrupt activities of its employees. Securities and Exchange Board of India (SEBI) has amended the rules governing the services of its employees for this. Under this, a competent authority can directly recover the amount from the concerned employee to compensate the financial loss caused to SEBI under the law. This amount can be taken from the salary of the employees and other amounts received by them.
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According to SEBI, this step can be taken when an employee has allegedly acted for an improper purpose or in a corrupt manner or has exercised his powers with corrupt intentions.
The market regulator, 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 their tenure on deputation. New rules have come into effect.
Under the amended rule, during the pendency of any proceedings initiated against an employee, the gratuity received by the concerned employee can be stopped in whole or in part. Gratuity will be paid to the employee after completion of the proceedings.
