In a major relief to distributors, SEBI has excluded the requirement disclosing TER of direct plans in the half-yearly consolidated account statement (CAS) if an investor has invested in a regular plan.
On Tuesday, SEBI has come out with a format for making this disclosure in which it has indicated that investors of regular plan would not get information on details of TER of direct plan.
Another key change that SEBI has made is the introduction of a footnote in the account statement saying that the commission paid to distributor is excluded of all taxes. Simply put, SEBI has asked AMCs to mention that the commission figures are gross and does not exclude costs incurred by distributors such as service tax, operating expenses, etc.
The footnote reads, “The commission in Col 9 above indicates gross commission received by the distributor against the respective investment and does not exclude costs incurred by distributors such as service tax (wherever applicable, as per existing rates), operating costs, etc.”
SEBI has directed AMCs to disclose the actual commission paid to distributors (in absolute terms) against the investor’s total investments in each scheme in the half-yearly consolidated account statements (CAS). This commission figure will include all direct monetary payments and other payments made in the form of gifts/rewards, trips, event sponsorships etc. by AMCs to distributors.
