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27 Oct 2011 09:30 AM
Approx 6000 distributors opt in for transaction charges 
Ravi Samalad
 

Out of the 40,000 ARN holders, only 6,000 distributors are estimated to have opted in for transaction charges

Mumbai: Numbers tell the story. That there has been a tepid response to  transaction charges from a large number of distributors is evident from the fact that approximately 6,000 distributors have opted in, confirms AMFI. A majority of those who have opted in are believed to be from small towns, observe industry officials.

Moreover, most of the top financial advisors and IFAs are believed to be opted out of the Rs 100- Rs 150 transaction charges.

The deadline for notifying AMFI about their status on transaction charges ended on October 21, 2011. Distributors are allowed to change their status (opt in/opt out) twice in a year - between March 1st to March 25th and September 1st to September 25th.

“All the distributors from top cities may not be keen on transaction charges. There is also confusion prevailing among distributors as to how the recent regulations will affect them. They want to wait and watch. The transaction charges are for meant to incentivize distributors from semi-urban and rural areas,” says V Ramesh, Deputy CEO, AMFI.

There is confusion whether if distributors chose to become advisors (as per the new SEBI concept paper), are they entitled to transaction charges?

 
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