SEBI (Employees’ Service) (Second Amendment) Regulations, 2024

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]