Earlier, AMC-designated employees were required to invest 20 per cent of their annual salary and perks in the mutual funds they manage. 

With an aim to address concerns about the "skin in the game" rule for designated employees of mutual funds, including CEO, CIO, and fund managers, markets regulator Sebi on Friday reduced the mandatory investment percentage, with the requirement now based on specific salary brackets.

Earlier, AMC-designated employees were required to invest 20 per cent of their annual salary and perks in the mutual funds they manage. This amount is locked in for three years.

The new framework will come into effect from April 1, 2025, Sebi said in a circular.

Apart from easing regulatory framework pertaining to reduction of minimum investment amount, Sebi has reduced frequency of disclosure, lowered lock-in period for employees who have resigned, empowered Nomination and Remuneration Committee to verify compliances by designated employees and relaxed requirements for employees managing liquid funds.

On investment requirements of designated employees, Sebi said such employees are required to invest a percentage of their salary or compensation (after tax and statutory deductions) in mutual fund schemes where they have oversight. The required investment percentage is determined by their gross annual compensation.

Regulator mulls allowing brokers to carry securities mkt activities in GIFT-IFSC

Sebi on Friday proposed to abolish the requirement for stock brokers to seek its approval for floating a subsidiary or joint venture to undertake securities market-related activities in Gujarat International Finance Tec-city - International Financial Services Centre (GIFT-IFSC). Moreover, stock brokers proposing to undertake securities market related activities in GIFT-IFSC can do so under a Separate Business Unit (SBU) of the stock broking entity itself on an arm's-length basis, Sebi said in its consultation paper.

70,000 misleading social media posts, handles removed: Narayan

Sebi, in consultation with social media platforms, has removed 70,000 misleading handles and posts since the implementation of the fin-influencer framework last year, said its whole-time member Ananth Narayan G on Friday. Amid concerns over foreign portfolio investors selling equities, the Sebi's whole-time member said the overall flows are not as bad as one would imagine and stressed that they "remain invested" in India.

Deadline extended till Jul 1 for complying with standards on related party transactions 

Sebi on Friday extended the deadline for listed entities by three months to July 1 for complying with the industry standards on minimum information to be provided for review by the audit committee and shareholders when seeking approval of a related party transaction. Earlier, the industry standards were set to become effective from April 1, 2025.

6 entities pay `4.14 cr to settle FPI rule violation  

Six entities, including US-based investment firm Acacia Partners and its affiliates, have settled a case pertaining to alleged FPI rules violation, after paying Rs 4.14 crore towards the settlement amount. Acacia Partners, its affiliates and Conifer Management LLC had filed suo-motu settlement applications in terms settlement proceedings norms proposing to settle by neither "admitting nor denying the findings of fact and conclusions of law", according to a Sebi order.