Mumbai, Sep 20 (TIWN) In order to make asset management companies accountable towards the interests of unit holders of mutual fund schemes, market regulator Securities and Exchange Board of India (SEBI) has mandated that all designated employees of AMC be paid upto 20 per cent of their monthly compensation in units of the schemes in which they have a role or oversight.

Though the SEBI regulation on the compensation package for AMC employees came in April, the regulator has now clarified that all junior employees below the age of 35 years will have to invest a portion of their salary in schemes which they manage in a phased manner. Other employees will be required to invest 20 per cent of their monthly compensation in MF schemes they manage from the current year itself. 

The scheme, which is akin to stock options (ESoPs) being offered to employees in various companies, is different in that it has been mandated to make managers more responsible towards the investors they serve in a mutual fund scheme. With personal interests being built in units, it is believed that managers would take utmost care to maximise the gains for investors and unit holders in such schemes.