The Securities and Exchange Board of India (SEBI) has proposed changes to remuneration disclosure norms for mutual fund asset management companies (AMCs). Under the proposal, AMCs would no longer need to publicly disclose the names, designations and salaries of top executives and high-earning employees. Instead, compensation details would be reported in a consolidated format.
At present, mutual fund firms are required to disclose the remuneration of key officials, including the chief executive officer (CEO), chief investment officer (CIO), chief operating officer (COO), the top 10 highest-paid employees, and staff earning above specified salary thresholds. SEBI has proposed replacing these disclosures with category-wise compensation figures and the number of employees in each category.
The regulator said the proposal follows industry feedback highlighting concerns around employee privacy, data protection and the limited value of individual salary disclosures for investors. Industry participants also argued that such requirements could put AMCs at a disadvantage in attracting and retaining talent compared with portfolio management services (PMS) firms and alternative investment funds (AIFs), which do not face similar disclosure norms.
According to SEBI, consolidated reporting would continue to provide investors with an overview of senior management compensation while ensuring disclosures remain relevant and proportionate. Its analysis found that employees covered under the current rules account for only a small portion of the workforce at most AMCs.
SEBI has also proposed that scheme-level remuneration details of fund managers should not be publicly disclosed, though they may be shared with investors holding units in the concerned scheme upon request.