Market regulator Securities and Exchange Board of India (SEBI) has mandated that a portion of the salary of key employees of asset management companies (AMCs) or mutual fund houses should be paid out in the form of mutual fund units in the schemes that they manage or oversee. The quantum prescribed by SEBI is a minimum 20 percent.

Also Read:

Sebi announces new guidelines on compensation of key mutual fund employees

It also said that the units which will be allocated as part of the salary will have a minimum 3-year lock-in period. This can't be redeemed even on resignation or retirement during the lock-in period. The new rules will be implemented from July 1.

To understand the impact on AMCs, CNBC-TV18’s Sumaira Abidi spoke to Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, and Feroze Azeez, Deputy CEO of Anand Rathi Wealth Management.

Also Read: MF players oppose SEBI's 'skin in the game' rule for AMC employees; here's why

Watch the video for more.

(Edited by : Bivekananda Biswas)

First Published:Apr 29, 2021 4:14 PM IST