SEBI has asked AMFI to ensure adherence to the best practices circular in letter and spirit, confirm two AMFI board members.
In fact, the market regulator has asked AMFI to chalk out a roadmap to ensure that fund houses adhere to the best practices circular.
A CEO of a large fund house said that AMFI would come out with another best practice circular pushing fund houses to follow such guidelines in letter and spirit. AMFI will take stringent action against those who violates such norms, he added.
SEBI has learnt that a few AMCs are not adhering to AMFI best practices guidelines. In fact, a few fund houses, which are complying with best practices guidelines on upfront commission in spirit, said that even they would back out if other members flout the norms, said the CEO.
SEBI has also asked AMFI to plan a road map to make MF Utility popular among distributors and investors.