SEBI Slab-Based Skin-in-the-Game Rules for AMC Staff
Why in the news
SEBI eased skin-in-the-game rules for mutual fund staff, swapping the flat 20% pay requirement for slabs tied to salary and designation.
Investment slabs
| Slab | CTC | Investment |
|---|---|---|
| 0 | Below ₹25 lakh | None |
| 1 | ₹25-50 lakh | 10% (12.5% excluding ESOPs) |
| 2 | ₹50 lakh-₹1 crore | 14% (17.5%) |
| 3 | Above ₹1 crore | 18% (22.5%) |
Categories and lock-in
- Category A: CEOs, CIOs, fund managers, key investment staff; full slab rules.
- Category B: CEO direct reports and non-investment heads; capped at slab 0 or 1. Liquid fund managers stay at slab 1.
- Superannuation: lock-in waived except closed-ended schemes; early exit: one year or end of the 3-year lock-in, whichever is sooner.
Exam angle
- AMCs disclose employee investments on exchange websites.
- Earlier norm: 20% of senior executives’ salary.