Latest news with #SebiMasterCircularforMutualFunds
Time of India
3 days ago
- Business
- Time of India
Sebi scraps transaction charges for mutual fund distributors, effective immediately; AMCs to follow revised payout norms
Markets regulator Sebi has scrapped the provision allowing asset management companies (AMCs) to pay transaction charges to mutual fund distributors for investments above a certain threshold, with the change taking effect immediately, PTI reported. Tired of too many ads? go ad free now The move follows a public consultation in May 2023 and an industry consultation in June this year. Under the earlier framework, distributors were eligible for transaction charges if they secured a minimum subscription of Rs 10,000. 'Sebi Master Circular for Mutual Funds dated June 27, 2024, allows AMCs to pay to the distributor transaction charges, subject to a minimum subscription amount of Rs 10,000 brought in by such distributors,' the regulator said in a circular on Friday. However, based on feedback, Sebi noted that distributors — as agents of AMCs — should be compensated directly through prescribed commission structures, making separate transaction charges redundant. The relevant provisions in the master circular have now been deleted. The regulator said the change will streamline distributor remuneration while enhancing transparency in the mutual fund ecosystem.
News18
3 days ago
- Business
- News18
Sebi scraps transaction charges for mutual fund distributors
Agency: PTI Last Updated: New Delhi, Aug 9 (PTI) Markets regulator Sebi has abolished transaction charges paid to mutual fund distributors, bringing an immediate end to the provision that allowed asset management companies (AMCs) to pay such charges for investments above a certain threshold. The regulator said the decision came after a public consultation was carried out in May 2023 and an industry consultation in June this year. Under the earlier framework, Sebi said distributors were eligible for such charges if they brought in a minimum subscription amount of Rs 10,000. '…Sebi Master Circular for Mutual Funds dated June 27, 2024, allows AMCs to pay to the distributor transaction charges, subject to a minimum subscription amount of Rs 10,000 brought in by such distributors," the regulator said in a circular on Friday. Based on the feedback, Sebi observed that distributors, as agents of AMCs, are entitled to be remunerated by the AMCs, the 'charges or commission, as prescribed under rules, shall be done away with". Accordingly, the master circular — which governed these charges — have been deleted. This will come into force with immediate effect, the regulator said. This change is expected to simplify the distributor compensation process while maintaining transparency in the mutual fund ecosystem. PTI HG TRB (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 09, 2025, 17:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
