SEBI Proposes Replacing Name-Wise AMC Pay Disclosures With Consolidated Reporting

The Securities and Exchange Board of India (SEBI) issued a consultation paper on Wednesday proposing to replace individual, name-wise salary disclosures at asset management companies (AMCs) with consolidated reporting, acknowledging that the current framework may not be well-suited to how mutual funds are actually structured.

Under the current framework, asset management companies are required to publicly disclose the names and individual remuneration of their chief executives officers (CEOs), chief investment officers (CIOs), chief operating officers (COOs), their top ten employees by pay, and all employees earning ₹1.02 crore or more annually or ₹8.5 lakh per month for those employed for part of the year.

What Is Being Proposed

Rather than naming individuals, asset management companies would disclose consolidated figures:

• Total remuneration of CEO, CIO and COO combined, with employee count.

• Aggregate pay of the top ten employees without naming them.

• Consolidated remuneration of all staff above the ₹1.02 crore threshold, with a headcount.

• CEO pay to median employee ratio, in the existing format.

A separate proposal would make fund manager remuneration available at the scheme level, on request, limited to schemes the requesting unitholder is actually invested in.

Why The Regulator Is Moving On This

SEBI acknowledged in the paper that mutual funds are trust structures where investors are unitholders rather than shareholders with direct ownership rights over the asset management company. That distinction weakens the case for applying the same disclosure standards used for listed companies, where equity shareholders bear residual risk and vote on governance matters.

The regulator also flagged two practical concerns. First, public disclosure of individual names and salaries creates personal data misuse risks for employees. Second, Portfolio Management Services and Alternative Investment Funds face no equivalent disclosure requirements, putting asset management companies at a talent retention disadvantage when competing for the same professionals.

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The Securities and Exchange Board of India's own analysis found that current disclosures cover only 2 to 10% of the employee base across most fund houses, pointing to the limited reach of a framework that nonetheless creates significant friction for the industry.

Public comments are invited until 30 June 2026.

Sources:

SEBI

The Economic Times