Sebi tightens mutual fund remuneration disclosure norms

With an aim to bring in greater trans­paren­cy in deal­ings of mutu­al funds (MFs), mar­kets reg­u­la­tor Sebi today asked MF hous­es to dis­close to investors the remu­ner­a­tion of employ­ees earn­ing Rs 1 crore in a finan­cial year.

Like list­ed com­pa­nies, MF hous­es will also have to dis­close the annu­al salary of chief exec­u­tive offi­cer (CEO), chief invest­ment offi­cer (CIO), chief oper­at­ing offi­cer (COO) and any oth­er top offi­cial and also the ratio of CEO’s remu­ner­a­tion to medi­an employ­ee salary.

Besides, name, des­ig­na­tion and remu­ner­a­tion of every employ­ee whose total pay pack­age is equal to or more than Rs 1.02 crore for that finan­cial year need to be disclosed. 

Salary details of part-time employ­ees, who received at least Rs 8.5 lakh per month dur­ing their stint with the com­pa­ny should also be disclosed. 
Not­ing that sur­ro­gate adver­tise­ments for alco­hol was ille­gal, the plea said it was the gov­ern­ment and its agen­cies’ fail­ure to ensure imple­men­ta­tion of the law. 

Source Eco­nom­ic Times

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