Securities markets regulator SEBI on Friday directed all mutual funds (MFs) and asset management companies (AMCs) to reveal the remuneration packages of their top executives.
According to a SEBI circular, all MFs have to disclose on their website the name, designation and remuneration of every employee, whose annual package is Rs 1 crore or above during a financial year.
SEBI said that the underlying objective of the move is to promote transparency in remuneration policies so that "executive remuneration is aligned with the interest of investors".
"The AMCs/MFs shall disclose this information within one month from the end of the respective financial year (effective from FY 2016-17)," the circular said.
SEBI also mandated that MFs disclose their total average assets under management (AAUM), debt AAUM and equity AAUM and rate of growth over the last three years.