2 min read.Updated: 22 Nov 2022, 06:32 AM ISTKuldeep Thareja,Mitu Bhardwaj,Rasmeet Kohli
Slab-based approach can be used for employees covered by SITG rules
Skin in the game (SITG) investing, mandated by Securities and Exchange Board of India (Sebi) for designated employees (DEs)—C-class executives, fund managers, compliance officers, etc.—of asset management companies (AMCs), completed its first year in September 2022. This move entailed these employees to mandatorily invest 20% of their take-home salary in units of mutual fund (MF) schemes that are under their direct purview or management. These units are locked in for a period of three years and subject to claw-back in case of violation of the model code of conduct prescribed by AMCs and Amfi (Association of mutual funds in India).