Aligning Incentives At Mutual Funds May 3, 2021, 11:50 PM IST
Quick takes, analyses and macro-level views on all contemporary economic, financial and political events.
Amidst buoyant capital markets, sustained inflows of funds from abroad, and a policy-induced low interest rates regime, it is notable that the Securities and Exchange Board of India (Sebi) has tightened norms for compensation of asset managers at mutual funds (MFs). Sebi has mandated that a minimum of 20% of the earnings of key personnel in an asset management company (AMC) should be in the form of units of MF schemes they manage, which does make perfect sense.
The idea is to align the interest of key employees of AMCs with those of the unit holders of MF schemes. The fine print in MF schemes do reiterate that returns are subject to market risks, and further that the past record cannot be a pointer to future performance. Nonetheless, Sebi, rightly, wants fund managers to de
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An avoidable controversy has been created, alleging that Serum Institute of India is engaging in price-gouging by setting a price of Rs 400 per dose for vaccines sold to state governments and Rs 600 per.
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