Is sebi rule unlawful for employees of mf (20% of salary)

Hi,

On equity and justice, the move of SEBI is welcome and circular is just-full. The producer/originator of specific services must be responsible to performance of those services, otherwise serving those services to general public is unjust-full.

As such on what grounds, this circular should be challenged? Why the Key Managerial Personnel should not be responsible for the scheme run by them in General Public to collect public money when they propound MUTUAL FUNDS SAHI HAI openly on TV.

As such SEBI is regulator and is entrusted with the trust of public. As per circular only 20% remuneration is to be paid in units and remaining 80% is to be paid as usual so the same may not be challenged. 

To add further, Mutual Fund distribution Commission to brokers should also be paid in MUTUAL FUND UNITS only; with minimum two years lock-in. The measure taken by SEBI is in right direction and I expect big change in fund house performance.  

I know investors are having good sentiments by this circular but Counter arguments are

1. The Key Managerial Financial person may have different personal financial goal than that of Investor. 

2. Performance or any wrong doing, there are different checks and ways SEBI is authorized to do.

3. If this is not challenged, tomorrow regulatory body like 

 A) RBI may tell all key employees of the bank's 20% salary must go to FD/Other scheme etc

B) IRDA can tell key employees has to take insurance they are managing (20% of their salary)

C) FSSAI can tell key employees has to buy foods from the employer at least 20% of their salary!

Will it not create chaos? All regulatory body can give Examples, SEBI is doing so we can also do for the best interest of customer in the court ?

 4. Right of Liberty - When person working from mutual fund and earns his salary, it is his right how he wants to spend and can't be enforced by such law

Apart from Law there are side effects in attracting talents - Say for Example Head HR got same salary offer one from Mutual fund industry and one from other industry, He will choose Other industry. It will in turn not to have Best HR, and It may result in not have employees moral to work for MF industry.