Markets regulator Securities and Exchange Board of India (SEBI) on Wednesday said a part of compensation of key employees of asset management companies (AMCs) should be paid in the form of units of scheme in which they have a role.
In a circular, SEBI said it has taken the decision with a view to align the interest of key employees of AMCs with the unitholders of the mutual fund scheme.
“A minimum of 20 per cent of the salary/ perks/ bonus/ non-cash compensation (gross annual CTC) net of income tax and any statutory contributions (i.e. PF and NPS) of the key employees of the AMCs shall be paid in the form of units of mutual fund schemes in which they have a role/oversight,” the regulator said.
News Source: businesstoday