India’s securities regulator has introduced a new rule requiring asset management companies to pay at least 20% of the salaries of key employees in the form of units in their mutual funds, a move that at least one fund manager has slammed as “ridiculous”. Effective July 1, “a minimum of 20% of the salary/ perks/ bonus/ non-cash compensation net of income tax and any statutory contributions of the key employees of the asset management companies shall be paid in the form of units of mutual funds schemes in which they have a role/oversight”, the Securities and Exchange Board of India says in a circular sent to the firms late last week.