The new rule that executives need to invest 20% of their pay into their own funds has sparked an uproar. Will the regulator stand its ground?
After years of trying to make mutual fund house executives accountable for the performance of their funds, the Securities and Exchange Board of India finally bit the bullet last week by putting out a circular, which despite being muddled, set the cat among the pigeons.
The 28 April circular from SEBI states, among other things, that 20% of the salaries of key mutual fund house executives should be invested in units of the schemes over which they have oversight or are managed by them.
As with almost any reform, the industry is unhappy. But if they’re looking for someone to …
Jayshree is a former writer at The Morning Context. As journalist, she had nearly a decade of experience across Mint, Business Standard and Bloomberg TV India. The bulk of her career has been devoted to tracking the capital markets regulator, exchanges, regulatory policies, financial scams and corporate governance issues. One of her biggest breaking stories was her incisive coverage of the colocation scam which put the lapses at NSE in the public domain.
jayshree@mailtmc.com