Markets regulator Securities and Exchange Board of India (SEBI) on Wednesday, 10 June proposed replacing individual name-wise executive remuneration disclosures at asset management companies (AMCs) with consolidated, aggregate figures — a move it says will balance transparency with privacy and competitive considerations.

What SEBI Has Proposed

Under the draft framework, AMCs would be required to publish aggregate remuneration for senior roles — including Chief Executive Officers (CEOs), Chief Investment Officers (CIOs), and Chief Operating Officers (COOs) — on their websites. The total pay to the top 10 highest-paid employees and the total remuneration for staff above existing thresholds would be disclosed, replacing granular, named-individual salary data.

All employees earning at least ₹1.02 crore annually — or ₹8.5 lakh per month for those employed for part of the year — would fall within the disclosure perimeter.

What AMFI Sought From SEBI

The Association of Mutual Funds in India (AMFI) had earlier made a formal representation to SEBI requesting the overhaul. AMFI sought disclosure of remuneration policies on AMC websites, streamlining of existing requirements into consolidated disclosures for key employees along with headcount figures, and scheme-level, consolidated disclosure of fund manager remuneration — to be provided only on investor request and limited to schemes in which those investors hold units.

The Regulator's Rationale

In its consultation paper, SEBI stated: 'This would provide a holistic and structured view of senior management compensation, enabling unitholders to assess the overall quantum of remuneration at the senior management level, while aligning the level of disclosure with considerations of materiality and proportionality.'

AMFI also informed the regulator that investment decisions are typically driven by factors such as scheme performance, risk management, asset allocation, investment strategy, and expense ratios — and that individual-level remuneration disclosures may not materially influence such decisions or improve investor outcomes.

Privacy and Talent Competition Concerns

Industry stakeholders flagged that public disclosure of named individual remuneration could expose employees to risks related to misuse of personal information. Additionally, the mutual fund industry competes for talent with segments such as Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs), where comparable disclosure requirements do not currently apply — creating what the industry argues is an uneven playing field.

What Happens Next

The proposal is currently in the public consultation phase, and stakeholder comments are being sought before any final rule is notified. If adopted, the revised framework would bring India's AMC disclosure norms closer in line with the broader financial services sector, while still giving unitholders a structured view of senior pay quantum. Final guidelines, once issued, are expected to apply across all SEBI-registered fund houses.