The Securities and Exchange Board of India (SEBI) on June 10, 2026, issued Consultation Paper On Review Of Provisions On Disclosure Of Executive Remuneration By Asset Management Companies (AMCs).
The consultation paper aims to seek public feedback on rationalizing the disclosure framework for employee remuneration in Asset Management Companies (AMCs), with the goal of improving transparency while balancing investor interests.
Currently, remuneration disclosures are governed by the SEBI Master Circular (for all AMCs), and additionally by SEBI LODR Regulations and the Companies Act for listed AMCs. While these frameworks ensure transparency, industry stakeholders (including AMFI) have raised concerns regarding excessive detail, complexity, and operational challenges. Suggestions include publishing remuneration policies, consolidating disclosures for key employees, and limiting scheme-level fund manager remuneration disclosures to investor requests.
Data analysis shows that the existing framework covers only a small portion (2%–10%) of employees in most AMCs, mainly focusing on top earners.
Both listed and unlisted AMCs follow similar disclosure thresholds and name-wise reporting; however, listed AMCs are subject to more granular, component-wise disclosures due to shareholder accountability requirements. Since unlisted AMCs operate under a different structure, SEBI is considering rationalizing disclosure requirements specifically for them to ensure proportional transparency without unnecessary burden.
Overall, the paper seeks to harmonize disclosure norms in line with regulatory objectives and industry practices.
