SEBI proposes aggregated pay disclosure for fund execs

India's securities regulator has proposed easing rules requiring mutual funds to publicly disclose the individual salaries of their top executives, a move that would reduce the level of detail currently available to investors. The Securities and Exchange Board of India (SEBI) issued a consultation paper on June 10 outlining a plan to shift from naming specific high-earning employees to providing aggregated, group-level compensation figures.

Currently, asset management companies (AMCs) must disclose on their websites the remuneration of key executives like the chief executive officer, chief investment officer, and chief operating officer. They are also required to list the names and pay of the ten highest-paid employees, as well as any employee earning more than 1.02 crore rupees annually. Under the proposed framework, these details would be consolidated. For example, AMCs would disclose the total remuneration paid to all employees in the "top ten" category or those above the salary threshold, alongside the number of employees in each group, without identifying individuals.

The regulator said the recommendations stem from feedback provided by the mutual fund industry. Industry...