 "Sebi tightens MF remuneration disclosure norms")
With an aim to bring in greater transparency in dealings of mutual funds (MFs), the Securities and Exchange Board of India (Sebi) in Friday asked MF houses to disclose to investors the remuneration of employees earning Rs 1 crore in a financial year.
Like listed companies, MF houses will also have to disclose the annual salary of chief executive officer (CEO), chief investment officer (CIO), chief operating officer (COO) and any other top official and also the ratio of CEO's remuneration to median employee salary.
Besides, MF’s total Average Assets Under Management (AAUM), as well as debt and equity AAUM and rate of growth over last three years would have to be disclosed.
The fund houses will have to disclose these information within one month from the end of a financial year starting with 2016-17, Sebi said in a circular.
To promote transparency in remuneration policies so that top executive remuneration is aligned with the interest of investors, fund houses will have to make the disclosures pertaining to a financial year on its website under a separate head 'remuneration'.
Under this, MF houses will have to disclose name, designation and remuneration of CEO, CIO and COO as well as salaries drawn by top ten employees in terms of remuneration for that financial year.
Besides, name, designation and remuneration of every employee whose total pay package is equal to or more than Rs 1.02 crore for that financial year need to be disclosed.
Salary details of part-time employees, who received at least Rs 8.5 lakh per month during their stint with the company should also be disclosed.