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<h1>SEBI Circular Clarifies AMC Employee Investments in Mutual Fund Schemes; Ensures Transparency and Investor Protection.</h1> The circular issued by the Securities and Exchange Board of India (SEBI) provides clarifications on the alignment of interests between key employees of Asset Management Companies (AMCs) and unitholders of mutual fund schemes. It mandates that a portion of the compensation for designated employees be invested in the mutual fund schemes they oversee. The circular outlines phased investment requirements for junior employees, specifies investment procedures, and addresses redemption rules. It also details conditions for investment in different scheme types, clawback provisions for misconduct, and disclosure requirements. The circular aims to ensure transparency and protect investor interests.