SEBI Proposes Consolidated Pay Disclosures For Mutual Fund AMCs, Flags Privacy Concerns

The Securities and Exchange Board of India (SEBI) has proposed replacing employee-wise remuneration disclosures by Asset Management Companies (AMCs) with consolidated disclosures.

The market regulator said the move is aimed at streamlining the disclosure framework while maintaining transparency for unitholders.

In a consultation paper issued on June 10, 2026, SEBI proposed that AMCs disclose aggregate remuneration paid to key categories of employees, along with the number of employees covered under each category. This would replace the existing requirement to publish remuneration details on a name-wise basis for certain employees.

SEBI also proposed a scheme-level disclosure mechanism for fund managers' remuneration. Under the proposal, consolidated scheme-level remuneration paid to fund managers would be made available upon request by unitholders and only for schemes in which they are invested.

The regulator said industry participants had raised concerns regarding the scope, granularity and relevance of the existing disclosure framework. According to SEBI, representations received from the Association of Mutual Funds in India (AMFI) sought rationalisation of the existing disclosure framework and proposed consolidated disclosures for key employees and fund managers.

SEBI's analysis of data obtained from AMFI showed that the existing framework covers only a small proportion of AMC employees. The regulator noted that disclosure requirements currently apply to approximately 2% to 10% of the total employee base in 36 out of 51 AMCs. Only a limited number of AMCs fall in higher disclosure brackets.

The consultation paper said public disclosure of individual remuneration could raise privacy and data protection concerns. SEBI noted that such disclosures may expose employees to risks relating to misuse of personal information. It added that mutual funds compete for talent with other asset management businesses where similar disclosure requirements do not apply.

SEBI further observed that investment decisions are typically driven by factors such as scheme performance, risk management, asset allocation, investment strategy, and expense ratios. It said individual remuneration disclosures may not materially influence investment decisions or improve investor outcomes.

Under the proposed framework, AMCs would disclose the number of chief executive officers, chief investment officers, chief operating officers and their equivalents, along with the aggregate remuneration paid to them. Similar consolidated disclosures would be made for top employees and employees crossing specified remuneration thresholds.

The regulator has also sought public comments on whether remuneration disclosures should shift from individual-level reporting to consolidated disclosures. It has also asked whether any additional disclosures should accompany the proposed framework.

Comments on the consultation paper can be submitted until June 30, 2026.