With little over a month left for the new skin-in-the-game rules to come into effect, executives in the mutual fund (MF) industry are worried that a portion of their salaries would be compulsorily locked in mutual fund (MF) schemes.
As per the rules laid down by the capital market regulator, Securities and Exchange Board of India (SEBI), 20 percent of all senior executives of mutual fund houses’ salaries would be kept aside for this. And this money will be locked in for three years. If the fund managers or such executives are caught violating any rules, their units would be sold off and the money would be clawed back into the scheme.
