NewsTreaties/Conventions/International Agreements

Securities and Exchange Board of India (SEBI) signed a Memorandum of Understanding (MoU) today with the Insolvency and Bankruptcy Board of India (IBBI) at Mumbai. The said MoU was signed by Shri Anand R. Baiwar – Executive Director, SEBI and Shri Ritesh Kavdia – Executive Director, IBBI.

SEBI and IBBI being interested in the effective implementation of securities laws and Insolvency and Bankruptcy Code, 2016 (‘Code’) including the SEBI (Appointment of Administrator and Procedure for Refunding to the Investors) Regulations, 2018 (Administrator Regulations) have agreed under the MoU to co-operate with each other.

The MoU, inter alia, provides for: (a) sharing of information between SEBI and IBBI subject to the limitations imposed by the applicable laws; (b) panel of Insolvency Professionals (IPs) to be appointed as Administrators underAdministrator Regulations; (c) periodic meetings to discuss matters of mutual interest, including regulatory requirements that impact their responsibilities, research and data analysis, information technology and data sharing; (d) cross-training of staff; (e) capacity building of insolvency professionals and financial creditors; (f) joint efforts towards enhancing the level of awareness among IPs about the importance and necessity of swift administration process under the provisions of the Administrator Regulations, promoting entrepreneurship, availability of credit and balancing the interests of all stakeholders under the Code, etc.

[Press Release dt. : 19-03-2019]

Securities Exchange Board of India

Legislation UpdatesNotifications

Circular on Mutual Funds

[SEBI/HO/IMD/DF2/CIR/P/2017/35  dated April 28, 2017]

1.Please  refer  to SEBI  Circular  No. SEBI/HO/IMD/DF2/CIR/P/2016/42 dated 18 March 2016.

2.In partial modification of the above mentioned circular, para C of the circular pertaining to disclosure of executive remuneration shall read as under:

“With the  underlying objective to promote transparency in remuneration policies so that executive remuneration is aligned with the interest of investors, MFs/AMCs shall make the  following disclosures pertaining to a financial year on the MF/AMC website under a separate head–’Remuneration‘:

1. Name, designation and remuneration of Chief Executive Officer (CEO), Chief  Investment  Officer  (CIO) and Chief Operations Officer (COO) or their  corresponding equivalent by whatever name called.

2. Name, designation and remuneration received by top ten employees in terms of remuneration drawn for that financial year.

3. Name,  designation  and  remuneration of  every  employee of  MF/AMC whose :

a. Annual remuneration was equal to or above one crore and two lakh rupees for that financial year.

b. Monthly remuneration in the aggregate was not less than eight lakh and fifty thousand rupees per month, if the employee is employed for a part of that financial year.

4. The  ratio  of  CEO’s  remuneration  to  median  remuneration  of  MF/AMC employees.

5. MF’s total AAUM, debt AAUM and equity AAUM and rate of growth over last three years. For  this  purpose,  remuneration  shall  mean  remuneration  as  defined  in clause  (78)  of section  2 of the Companies Act, 2013.

The AMCs/MFs shall disclose this information within one month  from  the  end  of  the  respective financial year (effective from FY 2016-17).”

3. 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.

Securities and Exchange Board of India