Regulatory Alerts2025-03-21
SEBI Circular on Alignment of Interest of Designated Employees of AMCs with Unitholders
The Securities and Exchange Board of India (SEBI) has amended the Master Circular for Mutual Funds to relax the 'skin in the game' requirements for designated employees of Asset Management Companies (AMCs). The revised framework introduces slab-wise mandatory investment percentages based on gross annual CTC, categorizes employees into specific roles, and allows flexibility in investment options and lock-in periods upon resignation or retirement. These changes aim to facilitate ease of doing business while ensuring alignment of interests, with the new provisions becoming effective from April 1, 2025.
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