InvestorQ : Can you tell me about the latest SEBI stipulation for fund managers and CEO compensation?
Arti Chavan made post

Can you tell me about the latest SEBI stipulation for fund managers and CEO compensation?

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Rutuja Nigam answered.
8 months ago
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In an interesting twist to the tale, the SEBI has stipulated that all Asset Management Companies that manage mutual funds in India will have to mandatorily pay minimum of 20% of gross salary of key management personnel or KMPs in the form of units of the scheme managed by them. This new stipulation will be effective from 01 July 2021.

SEBI believes that this would automatically align the interests of the fund manager with the interests of the unit holders who have invested in the fund. This stipulation will not apply to index funds, ETFs and overnight funds. This has come in the light of a number of cases where fund managers have been alleged to have taken rash decisions with public money.

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