SEBI Issues Consultation Paper on Executive Remuneration Disclosure by AMCs to Balance Transparency and Investor Interest

The Securities and Exchange Board of India (SEBI) has issued a consultation paper on June 10, 2026, aiming to review the provisions concerning the disclosure of executive remuneration by Asset Management Companies (AMCs).  

This initiative seeks to rationalise existing frameworks while balancing the need for corporate transparency and investor protection. 

Objective of the Consultation Paper 

The primary objective of SEBI's consultation paper is to reassess the current disclosure rules related to AMC employee salaries.  

It aims to enhance meaningful corporate transparency while safeguarding investor interests.  

The paper highlights the current landscape, noting that out of 53 active Indian AMCs, 7 are listed while 46 remain unlisted.  

These disclosures are regulated by the SEBI Master Circular for Mutual Funds and SEBI LODR Regulations. 

Existing Regulatory Frameworks 

Under the SEBI Master Circular issued on March 20, 2026, AMCs are required to disclose designations and exact pay for key executives such as the CEO, CIO, COO, the top 10 highest-paid employees, and those earning ₹1.02 crore or more annually.  

Additionally, the ratio of CEO pay to median employee pay must be shown. SEBI LODR and the Companies Act, 2013, demand strict structural transparency from listed entities. 

Read More: SEBI Examines Stock Brokers Net-Worth Norms and IPO Price Discovery Framework! 

Industry Concerns and New Proposals 

The consultation paper addresses several industry concerns, including structural mismatches, privacy hazards, poaching risks, and low investor value in executive salary disclosures.  

In response, SEBI proposes a shift towards consolidated disclosure, moving away from revealing individual employee names to publishing aggregate figures with total executive counts.  

Additionally, fund manager data would be shared at the scheme level, strictly upon request and limited to active unitholders in that specific fund. 

Public Comments Submission Guidelines 

SEBI invites public comments on the consultation paper, with a submission deadline of June 30, 2026. Comments can be submitted via the SEBI Public Comments Portal or emailed to peterm@sebi.gov.in or gopikaj@sebi.gov.in in case of technical issues with the portal. 

Conclusion 

SEBI's consultation paper on the disclosure of executive remuneration by AMCs aims to address industry concerns while enhancing transparency and investor protection. The proposed changes reflect a balanced approach to regulatory requirements and industry feedback. 

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