Salaries of AMCs officials earning Rs. 60 lakh per annum and above in FY 2015-16 will be uploaded on their respective websites by April 30.
A few days back, SEBI has instructed fund houses to disclose the remuneration of key personnel earning Rs. 60 lakh per annum and above within one month from the date it would come into effect i.e. from April 1, 2016. SEBI said that AMCs/MFs should disclose this information within one month from the end of the respective financial year (effective from FY 2015-16).
SEBI believes that this move will improve transparency in remuneration policies so that executive remuneration is aligned with the interest of investors. However, many fund officials believe that the move would encourage people movement and create instability in the industry.
In another development which has come into effect from April 1, fund houses will now pass on the interest accrued during the NFO period to investors.
Mutual funds are allowed to deploy NFO proceeds in Collateralized Borrowing and Lending Obligation (CBLO) before the closure of NFO period. CBLO is a money market instrument, which means that the scheme earns interest from this account till the closure of NFO period on a daily basis. However, AMCs cannot charge management fee or advisory fee during this period.
Apart from this, AMCs have started disclosing soft-dollar arrangement between them and brokers. It is an arrangement between AMCs and brokers through which the AMC executes trades through a particular broker and in turn the broker provide benefits such as free research, hardware, software and so on.
