On Monday, the Securities and Exchange Board of India (SEBI) withdrew its previous statement that blamed "external elements" for the recent demonstrations by employees against its "work culture" and demanded that Madhabi Puri Buch, the head of the regulatory agency, leave.

"Sebi uses the proper internal procedures to handle issues pertaining to employees. The regulatory body stated in a press release that Sebi and its employees have reaffirmed that such issues are strictly internal and will be managed in accordance with the organization's high standards of governance and within a time-bound framework, following constructive discussions with representatives of all grades of officers."

Following Sebi's previous announcement on September 4, many staff of the regulator assembled for a quiet protest outside the agency's offices in Mumbai's Bandra Kurla Complex (BKC) more than a week ago. In a recent announcement, Sebi said, "...all concerns shall be addressed amicably through established internal channels."

Workers at Sebi protest: What was the prior incident?

The regulator refuted claims of an unethical work atmosphere on September 4, stating instead that younger staff members were deceived about automatic promotions and their pay.

This was in reaction to press reports that workers of Sebi had complained about senior leadership to the Finance Ministry. These claims first appeared in an August 6 email received by an unidentified sender. The workers then sent in a list of sixteen requests for pay and other benefits, according to Sebi.

SEBI out that the employee organizations, who had denounced the anonymous email, had not sent it. The Finance Ministry has said that problems pertaining to human resources should be handled internally, according to a previous story from a credible source.