SEBI Proposes Simplified Remuneration Disclosure Framework for AMCs

SEBI has released a consultation paper proposing significant changes to the remuneration disclosure requirements for Asset Management Companies (AMCs). The proposal seeks to strike a balance between investor transparency and employee privacy while addressing industry concerns about confidentiality and talent retention.

1. Individual Salary Disclosures May Be Discontinued

Under the existing framework, AMCs are required to disclose remuneration details of certain employees and executives above prescribed thresholds.

SEBI has proposed discontinuing such employee-wise remuneration disclosures and instead allowing disclosure of consolidated remuneration figures.

2. Consolidated Remuneration Disclosure Proposed

AMCs may be permitted to disclose:

• Aggregate remuneration paid to Key Managerial Personnel (KMPs);
• Consolidated remuneration for other employee categories; and
• The number of employees covered under each category.

The proposal aims to provide meaningful information to investors without disclosing individual compensation details.

3. Fund Manager Remuneration to Be Available on Request

To maintain transparency at the scheme level, SEBI has proposed that information on the remuneration of fund managers managing a specific scheme be made available to investors upon request.

This approach seeks to ensure continued investor access to relevant information while avoiding routine public disclosure of individual remuneration details.

4. Objective of the Proposal

The proposed changes seek to address concerns regarding:

• Employee privacy and confidentiality;
• Talent retention challenges;
• Competitive disadvantages arising from public disclosure of compensation; and
• The need for balanced and meaningful investor disclosures.

5. Public Comments Invited

SEBI has invited comments and suggestions from stakeholders on the consultation paper.

The last date for submission of comments is:

30 June 2026

6. Expected Impact

If implemented, the proposal would simplify remuneration disclosures by shifting from employee-specific reporting to category-wise consolidated disclosures, while preserving transparency through scheme-level access to fund manager remuneration information upon request. This is expected to reduce privacy concerns and administrative burden while continuing to provide investors with relevant remuneration-related information.

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