The Securities and Exchange Board of India (SEBI) on May 06, 2024, issued the Securities and Exchange Board of India (Employees' Service) (Second Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Employees' Service) Regulations, 2001.
The following amendments have been stated:
• After Regulation 87 which states ‘Vigilance case’, regulation 87A has been 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.”
• In regulation 93 which states ‘Gratuity’, 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.”
They shall come into force on May 06, 2024.
[Notification No. SEBI/LAD-NRO/GN/2024/172]
