SynopsisSebi has proposed enhanced remuneration disclosure norms for mutual fund asset management companies, including consolidated disclosure of executive pay and employee count. The regulator also suggested limited access to scheme-level fund manager remuneration details for investors to strengthen transparency and corporate governance.AgenciesSebi proposes wider pay disclosures for mutual fund AMCs.The Indian market regulator, Sebi, has proposed that asset management companies (AMCs) may disclose consolidated remuneration of executive-level employees and the total number of such employees. Sebi said that such an approach would give investors in the funds of AMCs a broader view of senior management compensation. “Disclosure of executive remuneration is an important pillar for sound corporate governance, as it enables stakeholders to assess whether compensation structures are aligned with performance, risk management, and the interests of investors,” the circular said.Also Read | AMFI Data: Mutual fund SIP inflows slip 1% to Rs 30,954 crore in May The regulator said that the proportion of employees covered under the current disclosure framework is limited, typically ranging from approximately 2% to 10% of the total employee base in 36 out of 51 AMCs, while only a limited number of AMCs fall in higher brackets, depending on structural factors such as overall employee base and mandatory disclosure of top 10 employees, which is a key determinant of coverage in AMCs with smaller employee strength. AMCs are required to disclose the following on their website under a separate head “Remuneration”, which will have the name, designation, and remuneration of the Chief Executive Officer (CEO), Chief Investment Officer (CIO), and Chief Operations Officer (COO) or their equivalent by whatever name it is called. Secondly, the name, designation and remuneration of the top ten employees in terms of remuneration drawn for that financial year, as well as of all employees whose annual remuneration was equal to or above Rs 1.02 crore for the financial year or whose monthly remuneration in aggregate was not less than Rs 8.5 lakh per month, if the employee is employed for a part of that financial year.Next, it should have a ratio of the CEO’s remuneration to the median remuneration of MF/AMC employees and MF's total AAUM, debt AAUM and equity AAUM and rate of growth over the last three years.The circular further said that listed AMCs are already subject to detailed remuneration disclosure requirements under the SEBI LODR read with the Companies Act, including granular, component-wise disclosures in their annual reports. In contrast, unlisted AMCs operate within a different structural and regulatory context and are not subject to such frameworks.Accordingly, the disclosure requirements applicable to listed entities may not be directly comparable to those for unlisted AMCs.Also Read | AMFI Data: Equity mutual fund inflows tumble 40% to Rs 22,907 crore in MayAt present, the remuneration of fund managers is not disclosed separately and is captured only incidentally based either on threshold/top 10 employee disclosures. Considering that investment decision-making for each scheme rests primarily with the respective Fund Manager(s), there may be merit in providing visibility into their remuneration. However, such disclosures may involve sensitivity considerations. Accordingly, it is proposed that scheme-level consolidated disclosure of total remuneration paid to fund manager(s) may be made available upon specific request of unitholders and may be limited to the scheme(s) in which the investor requesting such details has invested as on the date of making such request. The market regulator has asked for comments or suggestions on the draft MF Regulations by June 30, 2026.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in along with your age, risk profile, and Twitter handle.Read More News on...morelessRead More News on...moreless