India proposes consolidated disclosure of executive pay at asset management firms

Wednesday 10 June 2026 - 07:45

India’s markets regulator has proposed allowing asset management companies to disclose executive and high-earner compensation on a consolidated basis, rather than requiring individual salary disclosures. The move is part of a broader effort to balance financial transparency with privacy concerns in the investment sector.

The Securities and Exchange Board of India (SEBI) suggested that firms could report total remuneration for senior executives along with the number of employees included in that category. According to the regulator, this approach would still provide investors with a clearer understanding of senior management compensation while reducing potential privacy risks.

SEBI noted that under the existing framework, only a small portion of employees—ranging from about 2% to 10% across most asset management companies—are currently covered by disclosure requirements. The proposed change aims to simplify reporting while maintaining oversight of pay structures in the industry.

The regulator also highlighted concerns that detailed individual-level salary disclosures could expose employees to privacy violations or misuse of personal data. By shifting to aggregated reporting, SEBI aims to mitigate these risks while preserving transparency for investors in mutual funds and other schemes.

In addition, SEBI proposed allowing investors to request scheme-level information on total remuneration paid to fund managers overseeing their investments. The regulator has opened the proposal for public consultation, with comments invited until June 30.

The initiative reflects India’s ongoing efforts to modernize financial regulation and improve governance standards across its rapidly growing asset management industry.