SEBI wants uniformity in commission structure of distributors across financial products

Ajay ji how will u level 70% offered in insurance with 70paise of mf.... Level play

Over Regulating Financial Services can be disastrous, Sebi/Amfi has done enough damage to the industry by frequent/sudden changes in last few years and is still doing the same job.
As policy makers you just have to provide the broad framework to safeguard investors interest you cant dictate the profitability or Margins of the industry players.
How did the Direct Plans, Mandatory Disclosures of commissions, IRA Regulations helped the retail segment? Is this path taking you to financial inclusion?
If there was a Uniformity in Mobile prices in the Mobile Handset Market, Innovative Products like Iphone would not have existed.
Price is what you pay, Value is what you get!
You can punish who is doing wrong but you cant punish the entire industry for the sins of a few!
Create an Investment Ombudsman if you want to protect the Investors.

Agree with Mr.Ajay

Liar liar pants on fire. SEBI says they are addressing the issue of misselling....hahahaha. How does segregating advisor and distributors stop misselling? You are still allowing banksothe biggest mksseller to sell).Also SEBI has proven that they work for AMCs and not investors at all. IMFI is the biggest example of that. They should come on the road and do a survey on how these products are sold by different entities like banks, brokers and individuals which they will never do because they just want to benefit companies and that also at an expense of investors. Also they should go to clients and try to give them insurance...that way they will come to know why there is a higher commissions in insurance. And by any means it is not 70%(please don't spread rumours...get your facts right before bashing other people). In fact they should increase the brokerage to IFAs so that they will be encouraged to go to more no. of people and give them mutual funds. You don't even know how much servicing is required in mutual funds. It is much more than what we are paid for sure. And in all the products it is the same. Claims are not easy to get in insurance products. People suffer a lot when there is claim and it is not given or given after a lot of follow up by family.....shame shame shame

Mutual fund distibutors are the one who have brought mutual fund industry to this level.Mutual fund distibutors dont mis sell at all they guide people what is correct and what is wrong . These are insurance companies who mis sell.So there is no need to change any policies in mutual fund industry.

"Bahut Khubsoorat hai her baat Lekin,
Gar Dil bhi hota to kya baat Hoti"
....

Let a tide come just like 2008 - Lehman Brothers crisis & all the Direct MF deposit would be redeemed by investors by fear cycle which will never come back again in market due to fear of uneventful losses. Retail IFA would diminish due to over regulation & over disclosure of margins. It would be impossible for AMC to reckon Direct & Retail NAV separately due to low folio count. There would be no one to in person to develop faith & conviction among investors to mobilise funds. AMCs would start leaving MF business just like Fidelity India due to over regulation by regulators. AUM would start to dry as people see losses & start unwinding their positions in lower benchmarks. Young generations degrade MF business & investment as negative career option. Eventually it will be SEBI behind all this chaos. Back in days when SEBI constricted Distributors margins Distributors started redeeming mutual funds & mobilised the same in Insurance. It was purely misselling due to better margins offered by Insurance company. Now who is responsible it's SEBI who already had the broader picture of repurcussion of over regulation of Distributors margins. Summarily Mutual Fund is a console business & Investors need someone to act as a mentor to keep their investments even during bad days. MF selling was already formulated with reasonable margins & to be sold exclusively by Distributors in early days by prudent people of SEBI but it seems SEBI is too much interested in Distributors margins rather than disguised products that Insurance companies sell through banks & Bank Managers getting Australia & Europe holiday tours by jeopardizing people hard earned money. After 05 yrs all retail clients would eventually redeem their folios due to knowhow of stark High NAV difference between Direct with Retail & would not come back in Direct due to incoherent information. AUM would Dry. Market Capitalisation of companies would fall & once again market would be dominated by FII due to over regulation by SEBI on Distributors margins front.

This is a good idea. Right now pension scheme (NPS) commissions are the lowest and Insurance commission is the highest. MFs fall somewhere in between. If Insurance commissions are brought in line with MF commissions that will create a level playing field and the right product will reach the investor...

Now a days one more malpractice is adopted by investor, they seek help of the distributor for investment in mf and after a month or two they covert the regular plan to direct for higher return. In this case distributor is befooled by the investor. in order to avoid such loopholes sebi should change to regulation related to regular and direct plan. expense ratio for both the options should be the same. diffrence of expense ratio between regular and direct should be transfer to sebi in investor protection fund.

please share your views

All Banks should be stopped from selling Mutual Fund as well as Insurance Products. Anything sold by bank is mis-selling. Banks should be forced to Stick warning sticker into all their branches stating "All money invested in any Financial Instrument through Banks including FD & RD is at Depositors Risk".

Completely agree with Ajay ji. PM moving towards financial literacy and you people not encouraging industry players by changing rules very frequently. If we need more penetration and compete in developed market kindly think broadly...

It is ironic that SEBI is intentionally ignoring worst kind of misselling in insurance sector lead by banks, who also sell mutual funds. These banks are hub of wrong doing but an alliance with regulatory big wigs has resulted hardly any specific and effective action against these. Instead small size distributors are made scapegoat to decorate regulatory body's shop for their efficiency.
Only solution lie in linking and controlling expense ratio of insurance sector just like MF sector. Bank should be allowed to open separated marketing shops atleast 1 km away from bank branch's. Lot of hue n cry is heard but nothing happened as SEBI see its interest in decorating shop but not the action. These regulatory bodies have mutual interest in between themaelves and no practical action is root cause of this negligence on their part.

Direct selling is also major co tribute to misspelling. Because most of direct investor investing by seeing past performance of scheme , not the objective or portfolio of the scheme. So likely mismatch of investor risk appetite and scheme objective.

Most amcs telling they r not favouring direct sell but no AMC has put board in their office that " it is advisable to invest through qualified investor advisor".

Direct selling is also major co tribute to misspelling. Because most of direct investor investing by seeing past performance of scheme , not the objective or portfolio of the scheme. So likely mismatch of investor risk appetite and scheme objective.

Most amcs telling they r not favouring direct sell but no AMC has put board in their office that " it is advisable to invest through qualified investor advisor".