Now T15 and B15 has become T30 and B30. SEBI has revised the definition of top cities and beyond top cities for additional TER.
This means, fund houses can charge an additional TER of up to 30 basis points if the net inflows from beyond top 30 (B30) cities are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the average assets under management (year to date) of the scheme, whichever is higher.
In a circular, SEBI said, “The additional TER for inflows from beyond top 15 cities (B15 cities) was allowed with an objective to increase penetration of mutual funds in B15 cities. Since more than five years have elapsed and on review, it is now decided that the additional TER of upto 30 basis points would be allowed for inflows from beyond top 30 cities instead of beyond top 15 cities.”
With this, the additional incentive will no longer be payable to distributors in top cities ranked 16 to 30.
Click here to see the latest list of cities based on their AUM as on December 2017.
This will come into effect from April 1, 2018.
