Home | Register | Sign in | Contact Us | Sitemap |
   
05 May 2012 09:47 AM
SEBI not keen on re-introducing entry load in the old format 
Pallabika Ganguly & Ravi Samalad
 

The industry had discussed various types of loads with SEBI during the meeting on 3rd May.

It is learnt that SEBI is not keen on re-introducing the entry load in the original format, says a CEO of a mid-sized fund house who met SEBI recently. Yesterday, distributor associations have requested SEBI to bring in a variable load. Some are of the view that there should be different loads for equity and debt funds.

Mutual fund CEOs have given their feedback to SEBI over the last few days. AMC CEOs are meeting SEBI one by one to discuss the issues faced by them. SEBI’s main agenda for the meeting is a discussion on the ways to increase the revenue and penetration of mutual funds. Yesterday, a CEO of a small fund house requested SEBI to hike exit loads and relax KYC and KYD norms.

KYC and particularly in-person verification (IPV) has become a major hindrance for distributors.

SEBI allows AMCs to charge up to 6% exit load. Exit loads help AMCs to deter investors from early redemption. Anything charged above 1% has to be written back to the scheme. However, no AMC has introduced such a high exit load so far as they fear a higher exit load can also put off some investors from investing. AMCs are allowed to use 1% exit load collected from investors exiting before one year for marketing and distribution expenses.

 
|
|
|
|
|
|
|
Cafemutual welcomes your comments. Any disagreements or criticisms must be expressed in a dignified manner. Thank you.
blog comments powered by Disqus
 
Related Articles
As markets gain, investors continue to cash out of equity funds
SBI MF to empanel SBI's retired employees under the new cadre of distributors
Registering SIP to get easier and faster
US funds in vogue
Federation of Mutual Funds Distributors Association of India expected to be functional in June
Gold ETF trading picks up on bourses during Akshaya Tritiya
Now, insure financial goals with general insurance cover
SBI MF launches ‘Gold Accumulation Facility’
NFOs now open May 21
Deutsche MF introduces DWS Fixed Maturity Plan - Series 16 (DFMP - 16)
Religare MF introduces Religare Fixed Maturity Plan - Series XV - Plan F (369 days)
ICICI Prudential MF introduces ICICI Prudential Fixed Maturity Plan-Series 64-3 Year Plan K
Taurus MF introduces Taurus Fixed Maturity Plan Series V (370 Days)
Deutsche MF introduces DWS Hybrid Fixed Term Fund - Series 9
HDFC MF introduces HDFC FMP 371D September 2012 (1)
Deutsche MF introduces DWS Hybrid Fixed Term Fund - Series 9
 
About Us | Media | Advertise With Us | Editorial Policy | Contact Us | Privacy Policy | Disclaimer | Sitemap
© Cafemutal.com. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of cafemutual.com is prohibited.
Best Viewed in I.E 7.0 and above. Resolution: 1024 * 768. Developed & Hosted by Accord Fintech Pvt. Ltd