New Sebi norms on compensation: Mutual fund houses fear losing talent

To seek changes in circular asking to pay 20% salary to key staffers in scheme units

A section of the mutual fund industry apprehends that the Securities and Exchange Board of India's (Sebi’s) diktat to pay a fifth of the salary of top executives in the form of units of MF schemes may make it harder to retain or attract talent. Many players are now planning to approach the markets regulator through their industry body Association of Mutual Funds in India (Amfi), seeking amendments to the compensation circular issued on Wednesday.
 
“For a CEO or sales head, I have to invest in every scheme of my AMC? Every single scheme? That’s going to be very