MFS bet on easier ‘compensation’ rules

The implementation of the compensation circular, which was extended to October from July by the Securities and Exchange Board of India (Sebi), has given a window of hope to the fund houses. Officials in the industry believe that the market regulator might give some concessions on the aspect of key employees of the fund houses. “It seems that the regulator might reduce the applicability only to the key people like CEOS, CIOS, and research team,” said the CEO of a top fund house. In April, Sebi had announced that 20 per cent of the salary of key executives would be paid in the form of units of mutual fund (MF) schemes they oversee. However, the key executives included the CEO, CIO, chief information security officer, chief operation officer, direct reportees to the CEO, and the fund management and research teams.