SEBI Proposal on Mutual Fund AMC Pay Disclosure
Why in the news
The market regulator floated a plan to scrap individual-level pay disclosures at fund houses and publish totals instead. Industry privacy concerns drove the idea, but some legal experts disagree.
Key facts
- Regulator: SEBI; subject: executive remuneration disclosure by mutual fund AMCs.
- Change: consolidated remuneration figures and employee counts replace name-wise listing.
- Comment deadline: 30 June 2026.
- SEBI’s analysis says employees covered by the present norms form only a small part of the AMC workforce.
Old versus proposed norms
| Aspect | Current norms | Proposed norms |
|---|---|---|
| Format | Names, designations and pay | Aggregate pay and headcount by category |
| Who is covered | CEO, CIO, COO, top 10 earners, all above pay thresholds | Senior executives, top-paid staff, staff above thresholds |
| Individual names | Disclosed | Not disclosed |
Concerns
- Legal experts caution that dropping individual disclosure could weaken an important governance tool.
Background: AMCs and mutual funds
- An AMC manages mutual fund schemes for investors, and is approved and regulated by SEBI under the SEBI (Mutual Funds) Regulations, 1996.
- A mutual fund pools money from many investors into a diversified portfolio; investors hold units reflecting their share.
- Structure: sponsor (promoter), trustees (hold assets in trust, oversee the AMC), AMC (manages schemes), custodian (holds securities), RTA (keeps investor records), SEBI (regulator).
Exam angle
- Regulator of mutual funds: SEBI, not RBI.
- Regulation: SEBI (Mutual Funds) Regulations, 1996.
- Related terms: AMC, sponsor, trustee, custodian, RTA.