In the now withdrawn press release, the capital markets regulator had said, “It is our belief that SEBI’s junior officers, who were in large numbers, originally aggrieved in respect of HRA allowances,

The withdrawal came days after a protest by a large number of Sebi employees outside the regulator's headquarters on September 5, a day after the press release. They had demanded the withdrawal of the statement and the resignation of Sebi chief Madhabi Puri Buch.

Sebi withdrew its Sept 4 press release after employees protested, claiming it contained incorrect information about their grievances and salaries. The employees had earlier complained to the finance ministry about a toxic work culture under chairperson Madhabi Puri Buch.

The Securities and Exchange Board of India (Sebi), on Monday, withdrew its statement blaming external elements for recent employee protests. The protest, which was against its work culture, called for the resignation of SEBI chief Madhabi Puri Buch.

SEBI says its employees have played a critical role over the past thirty-six years in shaping the Indian securities market.

Sebi had issued a statement suggesting that external forces were behind the unrest among its staff, which was seen as an attempt to discredit the organisation and its leadership.