SEBI's 'skin in the game' circular has gone down well with the majority of people, according to a poll conducted by Cafemutual. Of the total 2,358 respondents, 64% said it’s a good move, while 16% termed it as a bad idea. The rest 20% was of the view that the rule won't have much impact as many top AMC officials already invest a part of their salary in their own products.
Here's a breakdown of the votes received in the poll:
Good move. It will bring more accountability: 1500 votes, 64%
Bad move. It limits their choices: 382 votes, 16%
No major impact as many top officials may already be investing 20% of their salary in MFs: 476 votes, 20%
Many of our readers who participated in the poll feel the rule is a step in the right direction. They say that it will bring accountability.
"Very good move. At least it will bring accountability and funds would be managed properly," said one of our readers in the comments section on a Cafemutual story. Click here to read the story.
"I think it’s a very good move by SEBI. It will surely show some difference in the management of funds, which will impact the performance of fund," said another.
There was also a comment against the regulation. "What about commitments of employees like home EMI, car EMI etc? They are getting units with 3-year lock-in period," the reader said.
The new rule, which will come into effect on July 1, 2021, mandates AMCs to pay at least 20% of the salary of their key personnel in the form of units of the schemes in which they have active role.
The directive came as a surprise for many in the industry and has been a matter of debate since then. Different stakeholders have different views on it. You can click here to read more.
What is your take on the matter? Let us know in the comment section below.
