Sebi proposes easing executive pay disclosure norms for AMCs

SEBI has proposed easing executive remuneration disclosure norms for asset management companies by replacing individual salary disclosures with consolidated figures. The regulator said the move balances transparency with privacy concerns while aligning disclosure requirements with industry practices and investor needs

New Delhi: Markets regulator SEBI on Wednesday proposed easing executive remuneration disclosure rules for asset management companies by replacing individual name‑wise pay disclosures with consolidated figures.

SEBI said the move would balance transparency with privacy and competitive concerns.

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The market regulator considers the new rule that stipulates AMCs to report aggregate remuneration for senior roles — including CEOs, CIOs and COOs on their websites.

The total pay to the top 10 highest‑paid employees, and the total remuneration for staff above existing thresholds, will be reported instead of publishing individual salaries.

All employees earning at least Rs 1.02 crore annually or Rs 8.5 lakh per month if employed for part of the year will be covered as part of the disclosure.

AMFI made a representation to Sebi seeking disclosure of the remuneration policy of AMCs on their websites; streamlining of existing disclosure requirements into consolidated disclosures for key employees along with the number of such employees; a scheme-level, consolidated disclosure of remuneration of fund managers, to be provided only upon request of investors and limited to schemes in which such investors have invested.

“This would provide a holistic and structured view of senior management compensation, enabling unitholders to assess the overall quantum of remuneration at the senior management level, while aligning the level of disclosure with considerations of materiality and proportionality,” SEBI said in its consultation paper.

AMFI informed SEBI that investment decisions are typically driven by factors such as scheme performance, risk management, asset allocation, investment strategy, and expense ratios.

Individual-level remuneration disclosures may not materially influence such decisions or improve investor outcomes.

Further, public disclosure of named individual remuneration may expose employees to risks relating to misuse of personal information.

The mutual fund industry competes for talent with other segments such as Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs), where similar disclosure requirements are not applicable.