Fund houses to press for modifications to Sebi compensation circular

Mutual fund houses plan to approach market regulator Sebi through their industry body Association of Mutual Funds in India (Amfi) seeking amendments to the compensation circular issued on Wednesday.

Among the most important tweak sought by the industry will be to reduce the ambit of ‘key employees’.

Sebi’s current definition is quite widespread and almost covers the entire staff of an asset management company (AMC). Some of them also include personnel who have nothing to do with fund management or investment decisions.

“The circular also covers employees like the head of human resource and dealing staff, among others. These people have nothing to