SEBI to discuss distributor commissions with AMFI next month

KINDLY REQUEST TO SEBI IF ALL BUSINESS COMES BY NATIONAL DISTRIUTOR, BANK,DIRECT .......MODE ,CANCELLED ALL ARN NUMBER ......ITS ONLY LABOUR OF NORMAL DISTRIBUTER WHICH TEACHES INVESTERS AT GROUND LABEL BUT IT CAN NOT SEE ANYONE .....NO AMC,NO AMFI,NO SEBI ???????????

Why sebi is so much worried about 50-60 paisa of distributors commission. .they are just killing distributors in name of regulations .
.does not think about people who r in this business. .!
It's their future plan to remove comission as well distributors from industry..!,
get ready for alternative business. !!

Really good

Yes sir u r said rightly. AMFI should think about us. We are distributing mutual funds of AMC's to investor as per their needs & goals, we also daily care about investors investment, if their return they see negative first they asked to us not to AMC's & they are reducing commission day by day so how can we survive. Please think on it.

Respected SEBI/AMFI Members ,

Do you really think reduction of TER & Commission structures will help investors ?

Well it is actually reverse.

If TER & Commission Structures are reduced further, lot of distributors will migrate to alternative like Insurance Distribution or Equity Broking.

In either ways, investors will be at loss because in Insurance investors will get lower interest/bonus rates and in Direct Equity there is always risk of irrecoverable capital erosion of small & marginal investors and most of the time it gets eroded.

On the other hand presence of well paid and well trained distributors ensures protection of investors interest at large, by spreading proper financial information to grass root level of retail investors.

For instance, Entry Load was eliminated in 2009, also by the same time commissions payable to post office agents was reduced by postal department, which resulted in drastic fall in upfront commission and also drastic fall in number of distributors.

However if we analyse the data we will find that most of Ponzi Schemes in India, like Sarada Chit Fund Kolkata, Perls Agro Tech, Rose Valley Chit Fund, DSK DL Pune. KBC Group Nasik, Samruddha Jeevan Maharashtra, collected there maximum money/investment mostly after 2009.

There are still many Ponzi Schemes in real estate sector, where investors are fighting legal battles to recover there money.

Had there been sufficient number of distributors operating in the market, taking proper information & investment options to investors, the overall spread and intensity of these scams would have been much much lesser.

Obstinacy on the part of regulators to save few hundred crores of upfront commission, infact caused a loss of many Billiion rupees to common Indian Investors, and many of them had lost their lifetime of savings.

Totally agree with you sir!

Really true and infact the most important aspect , Mr Khatod has rightfully mentioned.
The practice of distribution is just not only selling of mf schemes and earning brokerage out of it.
This indeed very noble and selfless exercise by educating thousands of new or existing investors about the avenue, providing various services during the investment, keeping a close watch on the growth or degrowth of the funds, and especially at the time of deceased settlement.
I have a experience of working with banking institution, where it used to be a nightmare for a client to get through with such occassion.
We distribitors in other place always help them relentlessly during such period of need.
With this practice we not only helping amc s to get big AUMs but also we are always in the side of the customers first.
Whatever way the current scenario is geting digitalised, a human touch is inevitable.
Getting personalised service is every investors dream. I personally have experienced that the same kind of gesture is not profound with big institutions like banks.
They just are good in feeling forms whenever they have a instruction to advertise particular scheme of a particular Fund house. Once thats done, investors sometimes have to cry for even a single statement of account. Portfolio management and servillence is a far dream.
Large institutes either have their own AMCs or they have targets and log in days for various specific schemes of some other AMCs. They are least botgered about the need of the investor.
Being the custodian of their money, bank people know how much fund one customer have in his or her account. Very easily they achieve their log in day targets.
But all this practices which actually happening inside big institutions ultimately breach the customers investment intentions.
But we the individual distributors are far from that kind of practices. And that is very much true.
AMFI and SEBI should look into this very important aspect.
As in long run , if this continues, investor will lose trust upon MF investment.
Therefore, to keep the entire Individual distributor fraternity in tandem, they need to give a rethought to this entire COSTING matter.
Their action today will decide the future of not only individual distribitors but also to the entire MF market.
As investment is not only an agreement , its also a platform of trust and bonding amongst distributors and investors