The Securities and Exchange Board of India (SEBI) on November 06, 2024, issued a consultation paper on the review of requirements of alignment of interest of the Designated Employees of the AMC with the interest of the unitholders.
The following has been stated: -
•The SEBI consultation paper seeks public comments on proposals to review the regulatory framework for aligning the interests of designated employees of Asset Management Companies (AMCs) with unitholders' interests, aiming to ease compliance.
•The paper focuses on "skin in the game" requirements, ensuring AMC's employees have a vested interest in fund performance.
•This follows recommendations from SEBI's EODB working group to simplify regulations for mutual funds.
•Public feedback is invited on these proposals by November 21, 2024.
The detailed consultation paper is given in the document below.
