Market experts backed SEBI’s move to water-down executive remuneration regulations for AMC company employees as it was correcting a case of overregulation.

Securities and Exchange Board of India (SEBI)’s  proposal that disclosure of salaries of high earning employees in mutual fund companies as a group would suffice was a departure from the current individual disclosure. 

The decision was taken after industry bodies reached out to the capital markets regulator saying the disclosure norms had to be relaxed keeping in mind the privacy of the employees and that the information was of less significance for the retail investors, according to the consultation paper released June 10.

The regulations on executive remuneration were introduced in a circular in 2016 mandating disclosure of CEO,CIO and CEO salaries in addition to a list of employees earning more than a specific benchmark. As of March 20, 2026 Master Circular on Mutual funds this benchmark was ₹1.02 crore annual income and the top 10 employees earning the most.

According to the new consultation paper, the disclosure will be made cumulatively for employees and not for individuals.

The decision is aimed at differentiating mutual fund regulations from the provisions of Companies Act where company shareholders can demand information on individual remuneration, said Ashish Gupta, an industry professional who has held leadership positions at top financial services companies. Unitholders are part of a trust structure and hence, do not require the granular disclosure that shareholders would have required, he added and agreed that there were privacy concerns in disclosing individual salaries.

It was mentioned in the consultation paper that the proposals were on the lines of requests from the mutual fund industry bodies. The decision, however, did not go to the in-house mutual fund panel for discussion, said a person with knowledge of the matter. 

“SEBI had already gone too far in the disclosure and now it is effectively a rollback,” the person said. An underpaid fund manager or CIO may in a way signal potential attrition , but that is not as important as fund performance and the incentives provided to fund managers to reward that, the person added. 

While the change is procedural and may not have a large impact on the investment decisions of a retail investor, the consultation paper assumes significance in the context of SEBI Chairperson Tuhin Kanta Pandey’s transparent and consultative approach to regulation. However, regulatory experts say sheer quantity of information may not necessarily mean it is useful for investors. 

“If aggregate disclosures continue to adequately capture the overall remuneration received by management, the absence of granular group-wise information may not necessarily prejudice retail investors. The real issue is whether the disclosure framework enables investors and regulators to identify potential conflicts and assess whether compensation structures are aligned with the interests of unitholders,” said  Sonam Chandwani, Managing Partner, KS Legal & Associates, adding that transparency of information must be balanced against concerns relating to privacy and the practical utility of such disclosures.