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SEBI Proposes Shorter Pay-Per-View for Fund Managers
10 Jun
Summary
- SEBI suggests replacing individual AMC executive pay disclosures with consolidated data.
- Mutual fund industry cited privacy and talent competition for the change.
- Fund manager pay visibility may be limited to specific unitholder requests.
The Securities and Exchange Board of India (SEBI) is proposing to ease executive remuneration disclosure requirements for asset management companies (AMCs). This initiative, currently in a consultation paper phase, suggests replacing individual name-wise disclosures with consolidated reporting.
The move comes in response to industry concerns regarding employee privacy and maintaining a competitive edge in talent acquisition. Detailed disclosures, including salaries of CEOs, CIOs, COOs, and top-paid employees, are currently mandated. Listed AMCs already face extensive requirements under other regulations.
Under the proposed framework, AMCs would provide aggregate remuneration figures. This includes consolidated data for top executives and total amounts for the highest-paid employees and those above certain earning thresholds. Such a shift aims to offer a structured view of overall compensation.
Separately, SEBI is exploring a framework for disclosing fund managers' remuneration. Currently, this is not explicitly detailed. The proposal suggests that scheme-level consolidated remuneration for fund managers could be made available upon specific requests from unitholders invested in that particular scheme.
Public comments on these proposals are being accepted by SEBI until June 30. The regulator seeks to balance disclosure with materiality, proportionality, and privacy considerations.
