The Securities and Exchange Board of India (SEBI) has proposed changes to executive remuneration disclosures in the mutual fund industry that could significantly alter the level of information currently available to investors.
In a consultation paper released on 10 June, the market regulator suggested moving away from individual-level disclosure of senior executives’ salaries to a broader group-based format. If implemented, the proposal would reduce the extent of remuneration details that asset management companies (AMCs) are presently required to disclose.
At present, mutual funds provide unitholders with compensation details of key executives, including the chief executive officer (CEO), chief investment officer (CIO), and chief operating officer (COO). AMCs are also required to disclose the names and remuneration of the ten highest-paid employees, along with employees earning more than Rs 1.02 crore annually.
Under the proposed framework, these disclosures would be aggregated and presented at an employee-group level rather than identifying individuals. SEBI has also sought public feedback on whether compensation details of fund managers should be made available only to unitholders upon request or continue to be accessible through AMC websites.
According to the consultation paper, the recommendations stem from representations made by the mutual fund industry. AMCs argued that the existing disclosure requirements offered limited additional value to investors and highlighted concerns related to employee privacy and data protection. The industry also maintained that mutual fund investors are unitholders and do not possess the same ownership rights as shareholders in listed companies.
The proposal assumes significance as it comes amid the regulator’s broader emphasis on improving governance standards and enhancing transparency across market participants.
SEBI has invited public comments on the proposals until 30 June, 2026. The feedback received will help determine the final framework governing remuneration disclosures within the mutual fund sector.
