Minimum 20% key AMC employee compensation to be in mutual fund units: Sebi

Allotment to be done every month; units allotted subject to 3-year lock in, says market regulator

The Securities and Exchange Board of India (Sebi), in a far-reaching decision on Wednesday, told the Rs 32-trillion mutual fund (MF) industry that a fifth of the salary of top executives is be paid in the form of units of mutual fund schemes they oversee.

The market regulator has said this has been done to “align the interests of the key employees of the asset management companies (AMCs) with the unitholders of the schemes”.

“A minimum of 20 per cent of the salary/perks/bonus/non-cash compensation (gross annual cost-to-company) net of income tax and any statutory contributions (provident fund and national pension scheme) of