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19 Aug 2012 06:00 PM
Distributors in non-tier I cities await clarity  
Pallabika Ganguly
 

IFAs have mixed feelings on the new SEBI measures

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.

Shifali Satsangee, IFA from Agra agrees. “It’s a positive move by SEBI by increasing the commissions for IFAs in tier II cities,” says Shifali.

 
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