The regulator aims to rationalise existing requirements while maintaining meaningful transparency for investors.
Objective of the proposal
According to SEBI, the review is intended to streamline disclosure norms related to employee remuneration in AMCs, with a focus on improving the relevance and clarity of information shared with stakeholders. The regulator noted that while transparency in pay structures remains important for corporate governance, disclosures should also be balanced against operational practicality and investor usefulness.
Background and current framework
Executive remuneration disclosures are currently mandated under the SEBI Master Circular for Mutual Funds dated March 20, 2026, and, in the case of listed AMCs, also under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
At present, there are 53 AMCs in India, of which 7 are listed. SEBI said these frameworks have evolved over time to enhance governance standards, but industry participants have raised concerns regarding the scope and granularity of existing requirements.
The Association of Mutual Funds in India (AMFI) has submitted representations suggesting changes such as publishing AMC remuneration policies on company websites, consolidating disclosures for key employees along with their numbers, and introducing scheme-level disclosure of fund manager remuneration.
Under the proposal, such scheme-level details could be made available only on investor request and limited to schemes in which they have invested.
Industry data insights
SEBI’s analysis, based on data from AMFI, indicates that current disclosure norms cover a relatively small portion of AMC employees. In most cases, the proportion of employees included in remuneration disclosures ranges between around 2% and 10% of total staff across 36 out of 51 AMCs.
SEBI noted that the coverage varies depending on organisational structure and the mandatory requirement to disclose details of top earners.
Existing disclosure requirements
Under the current SEBI Master Circular, AMCs are required to publish remuneration details on their websites under a dedicated “Remuneration” section. This includes:
Names, designations, and remuneration of key senior executives such as the Chief Executive Officer (CEO), Chief Investment Officer (CIO), and Chief Operations Officer (COO), or their equivalents.
Details of the top 10 employees based on remuneration for the financial year.
Information on all employees whose annual remuneration is ₹1.02 crore or more, or whose monthly remuneration exceeds ₹8.5 lakh, including those employed for part of the financial year.
Next steps
SEBI has invited public comments on the proposed rationalisation and harmonisation of executive remuneration disclosure requirements for AMCs, as part of its ongoing efforts to refine governance and transparency standards in the mutual fund industry.
