IFAs have mixed feelings on the new SEBI
In order to increase the penetration beyond beyond top 15
cities (tier I cities), SEBI has allowed AMCs additional 0.30% expense ratio
for locations, depending upon the extent of new inflows. Though much of it is
expected to be passed on to distributors, many are not sure if there could be a
substantial enough increase in commissions.
“We are still not clear how much remuneration will be
paid to us. We don’t feel that
it will up too much because now exit load will go to the scheme. So, we don’t
know how AMCs are planning to modify the commissions," says Vikash Agarwal,
IFA from Orissa.
However, many IFAs welcome the move to broad base the
reach of mutual funds.
“We still need
more clarification on the structure of payment but overall we feel that it will
help AMCs to increase penetration in tier II cities," says Samiran
Banerjee, IFA from Durgapur.
IFA from Agra agrees. “It’s a positive move by SEBI by increasing the
commissions for IFAs in tier II cities,” says Shifali.