The Securities and Exchange Board of India (Sebi) on Friday extended the implementation of the circular pertaining to compensation of mutual fund employees until October 1, 2021. In April, the market regulator announced that 20 per cent of the salary of senior MF officials has to be paid in the form of units of schemes they oversee.

       This circular was to be applicable from July 1 but following industry feedback, Sebi has decided to grant more time.

       Fund houses have highlighted challenges in implementing the circular and have said it could lead to an exodus of mid-level employees from the industry.

       Sebi has said new framework will align the interest of the MF employees with that of the unitholders.