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One of our readers wrote to us with these queries:
I am a Kutch based individual distributor. I would like to understand if AMCs can clawback B30 incentives?
Also, I want to know how B30 transaction is mapped. At times, some of my clients’ applications are considered as T30 despite the fact that their PIN code is not in the AMFI master list.
The sender requested anonymity
Dear MFD,
Industry experts believe that AMCs can clawback B30 incentives as ultimately it is part of trail commission.
Usually, AMCs clawback B30 incentives if your B30 investor redeems his investment within the first 12 months of the date of investment.
On mapping of B30 transaction, PIN codes captured in MF application form has no role to play in tagging.
R&T agents use the city-wise PIN code file for top 200 cities provided by AMFI to tag all transactions and for generating the report on AUM by geography. If PIN code is available and valid as per All India Post but does not appear in the list of AMFI’s list of T30 PIN Code then
- RTAs see if the city name is available in the KYC city field. And if the name of city matches with T30 city list, it is considered as T30 for tagging; else it is B30
- And if city name is not available, R&T agents can tag it as B30 transaction
Remember, all NRI transactions are considered as T30 transactions and folios where country name is other than India are T30.
