Securities and Exchange Board of India issued a notification on May 6th, 2024, regarding the Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2024. These regulations amend the Securities and Exchange Board of India (Employees’ Service) Regulations of 2001.
1. Short Title and Commencement: The regulations are titled the Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2024. They are effective from the date of their publication in the Official Gazette.
2. Amendments:
- In Regulation 79:
- A proviso is inserted in sub-regulation (2), emphasizing the Competent Authority’s power to direct recovery from an employee for pecuniary loss caused to the Board, even from amounts due to the employee.
- An Explanation 2 is added, stating that proceedings initiated against an employee during service will continue even after their retirement or completion of contract period.
- Regulation 87A is introduced, outlining procedures for dealing with allegations of corrupt practices by employees who have resigned, retired, or completed their tenure with the Board.
- In Regulation 93:
- A new sub-regulation (4) allows for the withholding of an employee’s gratuity during proceedings initiated under regulations 79 to 82. The withheld gratuity will be paid to the employee upon conclusion of the proceedings.
These amendments aim to enhance the regulatory framework concerning employee service within the Securities and Exchange Board of India.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 6th May, 2024
SECURITIES AND EXCHANGE BOARD OF INDIA (EMPLOYEES’ SERVICE) (SECOND AMENDMENT) REGULATIONS, 2024
No. SEBI/LAD-NRO/GN/2024/172.—In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Employees’ Service) Regulations, 2001, namely: –
1. These regulations may be called the Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2024.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Employees’ Service) Regulations, 2001—
I. In regulation 79,
i. in sub-regulation (2), after clause (e) and before the Explanation, the following proviso shall be inserted, namely,–
“Provided that nothing contained in this regulation shall limit the power of the Competent Authority to direct recovery from an employee of the amount of pecuniary loss caused to the Board by all means available to the Board under the law including, to the extent permissible, from such amounts due from the Board and payable to the employee, in addition to recovery of such loss from the pay, howsoever that the total amount so recovered does not exceed the amount of pecuniary loss quantified.”
ii. the “Explanation” shall be renumbered as “Explanation 1” and after Explanation 1, the following shall be inserted, namely,–
“Explanation 2: For the purpose of this regulation, proceedings if instituted while the employee was in service whether before retirement/ repatriation to the parent cadre/ completion of contract period or during re-employment shall, after the final retirement/ repatriation to the parent cadre/ completion of contract period of the employee, be deemed to be a proceeding under this regulation and shall be continued and concluded by the authority before which it commenced in the same manner as if the employee had continued in service.”
II. After regulation 87, the following new regulation shall be inserted, namely,–
“Action against employees who have left the services of the Board.
87A. Where an employee who has resigned or retired from the services of the Board or has completed the tenure of deputation/contract with the Board is alleged to have indulged in corrupt practices during the period of service, then the said allegation shall be dealt with as per the procedure approved by the Competent Authority from time to time.
Explanation: For the purpose of this regulation, an allegation shall be deemed to indicate corrupt practice if the employee is alleged to have committed an act of criminal misconduct as provided in section 13 of the Prevention of Corruption Act, 1988 (49 of 1988) or is alleged to have acted for an improper purpose or in a corrupt manner or is alleged to have exercised or refrained from exercising the powers with an improper or corrupt motive.”
III. In regulation 93, after sub-regulation (3), the following new sub-regulation shall be inserted, namely,–
“(4) Notwithstanding anything contained in this regulation, the gratuity payable to an employee may be withheld either in full or part, during the pendency of any proceedings initiated against an employee under regulations 79 to 82 and the withheld gratuity shall be paid to the employee on conclusion of the proceedings, subject to the decision of the proceedings or any recoveries to be effected from the employee.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./082/2024-25]
Footnotes:
1. The Securities and Exchange Board of India (Employees’ Service) Regulations, 2001, were published in the Gazette of India on 6th September, 2001 vide S.O. No. 857(E).
2. They were subsequently amended –
(a) On 23rd December, 2003 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2003 vide F. No. SEBI/LE/15/2003.
(b) On 25th May, 2004 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2004 vide S.O. No.623 (E).
(c) On 11th April, 2007 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2007 vide F. No.11/LC/GN/2006/2143.
(d) On 14th January, 2010 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2010 vide notification No. LADNRO/GN/2009-10/28/190983.
(e) On 12th October, 2010 by the Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2010 vide notification No. LAD-NRO/GN/2010-11/17/22954.
(f) On 10th October, 2011 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2011 vide notification No. LAD-NRO/GN/2011-12/26/31671.
(g) On 2nd May 2012 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2012 vide notification No. LADNRO/GN/2012-13/03/5290.
(h) On 19th November 2012 by the Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2012 vide notification No. LAD-NRO/GN/2012-13/223/5429.
(i) On 8th October, 2013 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2013 vide notification No. LADNRO/GN/2013-14/27/6721.
(j) On 26th February, 2015 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2015 vide notification No. LAD-NRO/GN/2014-15/22/366.
(k) On 21st April, 2015 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2015 vide notification No. SEBINRO/OIAE/GN/2015-16/002.
(l) On 30th November, 2016 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2016 vide notification No. SEBI/LAD/NRO/GN/2016-17/016.
(m) On 15th December, 2016 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2016 vide notification No. SEBI/LAD/NRO/GN/2016-17/024.
(n) On 27th April, 2017 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2017 vide notification No. SEBI/LAD/NRO/GN/2017-18/001.
(o) On 17th May, 2017 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2017 vide notification No. SEBI/LAD/NRO/GN/2017-18/002.
(p) On 13th July, 2017 by Securities and Exchange Board of India (Employees’ Service) (Third Amendment) Regulations, 2017 vide notification No. SEBI/LAD-NRO/GN/2017-18/010.
(q) On 27th April, 2018 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/09.
(r) On 31st May, 2018 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/18.
(s) On 13th August, 2018 by Securities and Exchange Board of India (Employees’ Service) (Third Amendment) Regulations, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/29.
(t) On 8th May 2019 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2019 vide notification No. SEBI/LAD-NRO/GN/2019/15.
(u) On 5th August, 2020 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2020 vide Notification No. SEBI/ LAD-NRO/GN/2020/26.
(v) On 24th January, 2022 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2022 vide Notification No. SEBI/ LAD-NRO/GN/2022/65.
(w) On 22nd June, 2022 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2022 vide Notification No. SEBI/LAD-NRO/GN/2022/87.
(x) On 30th December, 2022 by Securities and Exchange Board of India (Employees’ Service) (Third Amendment) Regulations, 2022 vide Notification No. SEBI/LAD-NRO/GN/2022/111.
(y) On 15th May, 2023 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2023 vide Notification No. SEBI/LAD-NRO/GN/2023/129.
(z) On 20th October, 2023 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2023 vide Notification No. SEBI/LAD-NRO/GN/2023/156.
(aa) On 7th February, 2024 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2024 vide Notification No. SEBI/LAD-NRO/GN/2024/165.
