Sebi tweaks MF compensation circular ahead of implementation on Oct 1

Sebi has also replaced the nomenclature 'key employees' - used in the original circular - with 'designated employees'

The Securities and Exchange Board of India (Sebi) on Monday tweaked the circular that mandated paying a fifth of compensation to key employees of asset management companies (AMCs) in the form of mutual fund (MF) units, ahead of its implementation date of October 1.

The regulator said “junior employees”— those below 35 years — would have to invest only 10 per cent of their compensation in MF units of the fund house in the first year, and 15 per cent in the second year (from October 1, 2022), as against 20 per cent for the other employees. However, chief executive officer