{"id":128401,"date":"2017-05-04T10:37:45","date_gmt":"2017-05-04T05:07:45","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=128401"},"modified":"2017-05-04T10:37:45","modified_gmt":"2017-05-04T05:07:45","slug":"sebi-issues-circular-on-disclosure-of-executive-remuneration-by-mutual-fundsasset-management-companies","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/05\/04\/sebi-issues-circular-on-disclosure-of-executive-remuneration-by-mutual-fundsasset-management-companies\/","title":{"rendered":"SEBI issues circular on disclosure of executive remuneration by Mutual Funds\/Asset Management Companies"},"content":{"rendered":"

Circular on Mutual Funds<\/strong><\/p>\n

[SEBI\/HO\/IMD\/DF2\/CIR\/P\/2017\/35 \u00a0dated April 28, 2017]<\/p>\n

1.Please\u00a0 refer\u00a0 to SEBI \u00a0Circular \u00a0No. SEBI\/HO\/IMD\/DF2\/CIR\/P\/2016\/42 dated 18 March 2016.<\/p>\n

2.In partial modification of the above mentioned circular, para C of the circular pertaining to disclosure of executive remuneration shall read as under:<\/p>\n

\u201cWith the \u00a0underlying objective to promote transparency in remuneration policies so that executive remuneration is aligned with the interest of investors, MFs\/AMCs shall make the\u00a0 following disclosures pertaining to a financial year on the MF\/AMC website under a separate head\u2013’Remuneration<\/em>‘:<\/p>\n

1. Name, designation and remuneration of Chief Executive Officer (CEO), Chief\u00a0 Investment\u00a0 Officer\u00a0 (CIO) and Chief Operations Officer (COO) or their \u00a0corresponding equivalent by whatever name called.<\/p>\n

2. Name, designation and remuneration received by top ten employees in terms of remuneration drawn for that financial year.<\/p>\n

3. Name,\u00a0 designation\u00a0 and\u00a0 remuneration of\u00a0 every\u00a0 employee of\u00a0 MF\/AMC whose :<\/p>\n

a. Annual remuneration was equal to or above one crore and two lakh rupees for that financial year.<\/p>\n

b. Monthly remuneration in the aggregate was not less than eight lakh and fifty thousand rupees per month, if the employee is employed for a part of that financial year.<\/p>\n

4. The\u00a0 ratio\u00a0 of\u00a0 CEO’s\u00a0 remuneration\u00a0 to\u00a0 median\u00a0 remuneration\u00a0 of\u00a0 MF\/AMC employees.<\/p>\n

5. MF’s total AAUM, debt AAUM and equity AAUM and rate of growth over last three years. For\u00a0 this\u00a0 purpose,\u00a0 remuneration\u00a0 shall\u00a0 mean\u00a0 remuneration\u00a0 as\u00a0 defined\u00a0 in clause\u00a0 (78)\u00a0 of section\u00a0 2 of the Companies Act, 2013.<\/p>\n

The AMCs\/MFs shall disclose this information within one month\u00a0 from\u00a0 the\u00a0 end\u00a0 of\u00a0 the\u00a0 respective financial year (effective from FY 2016-17).\u201d<\/p>\n

3. This\u00a0\u00a0 circular\u00a0\u00a0 is\u00a0\u00a0 issued\u00a0\u00a0 in\u00a0\u00a0 exercise\u00a0\u00a0 of\u00a0\u00a0 the\u00a0\u00a0 powers\u00a0\u00a0 conferred\u00a0\u00a0 under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996 to\u00a0 protect\u00a0 the\u00a0 interests\u00a0 of\u00a0 investors\u00a0 in\u00a0 securities\u00a0 and\u00a0 to\u00a0 promote\u00a0 the development of, and to regulate the securities market.<\/p>\n

Securities and Exchange Board of India<\/p>\n","protected":false},"excerpt":{"rendered":"

Circular on Mutual Funds [SEBI\/HO\/IMD\/DF2\/CIR\/P\/2017\/35 \u00a0dated April 28, 2017] 1.Please\u00a0 refer\u00a0 to SEBI \u00a0Circular \u00a0No. SEBI\/HO\/IMD\/DF2\/CIR\/P\/2016\/42 dated 18 March 2016. 2.In partial <\/p>\n","protected":false},"author":91,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[16771,2536,16781,15642,16791],"class_list":["post-128401","post","type-post","status-publish","format-standard","hentry","category-legislationupdates","category-notifications","tag-asset-management-companies","tag-disclosure","tag-executive-remuneration","tag-mutual-funds","tag-securities-and-exchange-board-of-india"],"yoast_head":"\nSEBI issues circular on disclosure of executive remuneration by Mutual Funds\/Asset Management Companies | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, 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Asset Management Companies to prominently disclose Total Expense Ratio of all schemes on daily basis","author":"Saba","date":"February 7, 2018","format":false,"excerpt":"1. It is observed that there are frequent changes carried out in Total Expense Ratio (TER) and such changes are not prominently disclosed to investors. In order to bring uniformity in disclosure of actual TER charged to mutual fund schemes and to enable the investor to take informed decision, the\u2026","rel":"","context":"In "Business Law"","block_context":{"text":"Business Law","link":"https:\/\/www.scconline.com\/blog\/post\/category\/Business_Law\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":135311,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/06\/06\/sebi-introduces-online-registration-mechanism-for-mutual-funds\/","url_meta":{"origin":128401,"position":1},"title":"SEBI introduces online registration mechanism for mutual funds","author":"Saba","date":"June 6, 2017","format":false,"excerpt":"CIRCULAR [SEBI\/HO\/IMD\/DF3\/CIR\/P\/2017\/52 \u00a0dated June 01, 2017] All Mutual Funds\/Asset Management Companies(AMCs)\/Trustee Companies\/Board of Trustees of Mutual Fund Sub: Online Registration Mechanism for Mutual Funds 1. Hon'ble Minister of Finance, Government of India, in his speech while presenting the Budget for FY 2017-18 on February 01, 2017, announced that the process\u2026","rel":"","context":"In "Business News"","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":250110,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/22\/sebi-issues-norms-for-investment-and-disclosure-by-mutual-funds-in-derivatives\/","url_meta":{"origin":128401,"position":2},"title":"SEBI issues norms for investment and disclosure by mutual funds in derivatives","author":"Bhumika Indulia","date":"June 22, 2021","format":false,"excerpt":"On June 18, 2021, the Securities and Exchange Board of India (SEBI) has issued a circular for the norms for investment and disclosure by mutual funds in derivatives. \u00a0 SEBI vide Circular No.Cir\/IMD\/DF\/11\/2010 dated August 18, 2010 has, inter alia,prescribed the guidelines for participation of mutual fund schemes in Interest\u2026","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":196122,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/19\/sebi-amendments-to-circulars-on-monitoring-of-foreign-investment-limits-in-listed-indian-companies\/","url_meta":{"origin":128401,"position":3},"title":"SEBI: Amendments to Circulars on Monitoring of Foreign Investment limits in listed Indian companies","author":"Saba","date":"May 19, 2018","format":false,"excerpt":"SEBI vide Circular No. IMD\/FPIC\/CIR\/P\/2018\/61 dated April 5, 2018 introduced a new system for Monitoring of Foreign Investment limits in listed Indian companies and prescribed guidelines with reference to the necessary infrastructure, data to be provided by listed Indian companies and other related matters. 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