SUBSCRIBE NEWSLETTER
MF News AMCs want distributors to bear transaction fee on BSE Star MF platform

AMCs want distributors to bear transaction fee on BSE Star MF platform

BSE has recently started levying transaction fee on AMCs for transactions initiated by distributors through its BSE Star MF platform.
Nishant Patnaik Jan 5, 2017

AMFI has sent a letter to BSE Star MF in which it has expressed its discontent over the transaction fee levied on AMCs for transactions routed through its platform. In fact, fund houses have decided not to pay any transaction fee to BSE Star MF.

Last month, BSE started levying transaction fee on AMCs on its BSE Star MF platform which ranges between Rs.6 and Rs.30 per transaction depending on the volume. This transaction fee was applicable from December 1, 2016.

However, fund houses have told BSE Star MF through AMFI that they do not want to bear this transaction cost and termed the decision of BSE as unreasonable and unacceptable.

Instead, AMCs want distributors to bear this transaction fee. “Since the platform is a facility provided by BSE to brokers and distributors, it is appropriate that any charges related to the provision of the service are recovered from the service recipients and not from the AMCs. BSE’s decision to levy transaction charges on AMCs is therefore unacceptable and should be reversed,” said AMFI in the letter. Cafemutual has a copy of this letter.

This matter was discussed at the AMFI board meeting held on December 13.

A senior fund official is of the view that distributors should bear this cost as they are using this service. “Transactional platforms like BSE Star MF help distributors save time and cost. Then why AMCs should bear this cost? Almost all fund houses have enabled online transaction through their websites. So distributors can use our websites.”

However, a few officials have a different view. “AMCs are paying a healthy fee to an industry funded platform. They bear both annual fee and transaction fee. Then why so much noise to pay to BSE Star MF,” says a senior official.

AMFI has requested BSE to re-consider this matter.

9 Comments
deepak · 8 months ago
O Hello, all online portal Players BSE Star NSE NMFII MFUtilities..... Please decide now on transaction charges and all Distributors Please compare all products and then take d call.
Vivek · 8 months ago
Is it fair to give annual fee+transaction charge to MF utility...this shud be applied to bse also... Hv a level playing field atleast... .
Omkeshwar Singh · 8 months ago
Distributors , Members of BSE StAR MF platform need not worry. NO charges for them ... NO transaction charges , NO Deposits , NO Annual Maintenance Charges ...
GHAZALI · 8 months ago
Thank you OMKESHWAR JI
K V raghupathi · 8 months ago
At last good sense has prevailed upon AMFI and AMCs that all cost- whether it is the charges and/or tax be recovered/paid by the service receivers. The gentlemen at the helm of affairs in both the entities should apply same logic on the service tax on our brokerage, as they are the service receivers and we, the IFAs are the service providers
Lingaraju · 8 months ago
Very well said.
Reply
devendra · 8 months ago
amcs wants the fruits of the hard labour of IFA's without any effort. even service tax is being rubbed on the ifa's while the fund managers /amc personnel have seamless facilities of doing business and enjoying huge benefits/profit sharing of the business procured by ifa. the bse platform is a source where in the ifa can process through amc the business done. hence ifa's fraternity should vehemently oppose this move by the top amcs
Vijay kumar parmar · 8 months ago
Thanks Omkeshwarji
Shekar · 8 months ago
AMC's need business and BSE needs transaction both looking for their benefits but the charges has to pay by distributor?
Wish to stay on top of your game? Get daily tips, ideas and articles to grow your business.
Subscribe to Cafemutual Newsletter.