Alignment of interest of Key Employees of Asset Management Companies (AMCs) with the Unitholders of the Mutual Fund Schemes

Last updated: 26 June 2021

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The Securities and Exchange Board of India (SEBI) has extended the implementation date for the circular regarding the alignment of interests between key employees of Asset Management Companies (AMCs) and mutual fund unitholders. Originally set for July 1, 2021, the new effective date is now October 1, 2021. This decision was made after considering feedback from stakeholders.

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/IMD/IMD-I/DOF5/P/CIR/2021/582

June 25, 2021

All Mutual Funds/
Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds /
Association of Mutual Funds in India (AMFI)

Sir/ Madam,

Subject: Alignment of interest of Key Employees of Asset Management Companies (AMCs) with the Unitholders of the Mutual Fund Schemes

1. SEBI vide Circular no. SEBI/HO/IMD/IMD-I/DOF5/P/CIR/2021/553 dated April 28, 2021, specified provisions with regard to ‘Alignment of interest of Key Employees of Asset Management Companies (AMCs) with the Unitholders of the Mutual Fund Schemes’. The aforesaid circular was to be applicable with effect from July 01, 2021. However, based on the feedback received from stakeholders, it has been decided to extend the date of implementation of the circular to October 01, 2021.

2. This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

Divya Kulshrestha
Deputy General Manager
Tel no.: 022-26449357
Email: divyam@sebi.gov.in