SEBI Mandates All The AMC Staff To Invest Part Of Their Salary in Their Own Fund House Schemes

SEBI(Securities and Exchange Board of India)has the right to instruct the market participants. To be associated with the mutual fund unit holders(investors)with more ease, SEBI instructed all the AMC(Asset Management Company) Participants to invest part of their salary proceeds in their own fund house schemes.

This is bring to provide uniform experience to the investors as well as the AMC staff. As per SEBI’s Mandate all the amc staff aged below 35 years of age are categorised as “Junior Staff” where they would invest at least 20% of their salary. Fund Managers, CEO(Chief Executive Officer)and CIO(Chief Investment Officers)were exempted from this “Junior Staff” category even though they are below 35 years of age.

AMC Junior staff have to allocate 10% of their salary in their own fund house schemes.This would come into effect from October 1st,2021 where from 2022 October 15%, 2023 October 1st 20% of their salary would be mandatory invested.

From 2023 October Onwards, Junior Staff would mandatory allocate 20% of their salary into the fund house schemes. This allocation would become null and void if the junior staff attains 35 years of age.

Junior staff’s allocation would be mandatory locked-in for 3 years where he can’t withdraw the investment corpus till the end of the lock-in and after completion of the lock-in they can reinvests the investments to another 3 years.

This SEBI’s mandate would come into effect from October 1st,2021 for all the amc employees aged 35 below which would mandatory invests their part of their salary in their own fund house schemes.

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