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  • MF News AMFI may approach SEBI to relax norms regulating the new cadre of distributors

    AMFI may approach SEBI to relax norms regulating the new cadre of distributors

    AMFI wants new cadre of distributors to be allowed to sell more product categories such as ELSS, balanced funds and equity savings funds.
    Nishant Patnaik Jul 17, 2018

    AMFI is likely to approach SEBI to relax norms governing new cadre of distributors, said three people familiar with the development.

    Among its key requests would be allowing new cadre of distributors to sell more product categories having some predefined features that are easy to understand and relaxation in  the criteria to become new cadre of distributors.

    A CEO of a private fund house told Cafemutual that AMFI would request SEBI allowing new cadre of distributors to sell ELSS, balanced advantage funds and equity savings funds as these funds are easy to understand. He further said, “Another key request would be implementation of captive distribution model for new cadre of distributors in which they can work exclusively with a fund house. This will encourage fund houses to on board and train new people to join mutual fund distribution business. ”

    Another CEO of private fund house believes that SEBI should allow such distributors to sell liquid fund, ultra short term funds and ELSS.  “I think MIPs, money market or accrual fixed income and tax saving funds should be allowed as these funds are easy to understand.”

    Currently, new cadre of distributors can sell only diversified equity schemes, fixed maturity plans (FMPs) and index schemes, which have returns equal to or better than their scheme benchmark returns during each of the last three years.

    An AMFI board member said that they would approach SEBI with these proposals soon. “There are some important suggestions from a few members. We will shortlist these suggestions and approach SEBI to relax norms governing distribution channel.”

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    7 Comments
    Smt. KAPANA RASTOGI · 5 years ago `
    Application Forms for all the Mutual Funds should have same Format or there must be a common Application Form for all the MF's. It will save wastage of paper and will be easy to fill.
    G.Vijaya · 5 years ago
    Yes I fully support, applications should be all in one form, not different form different mutual funds. Information required by MFs same for all MFs. why different forms.
    Reply
    Chandrakant M Tungare · 5 years ago `
    I agree with ge aove suggestion re common application forms
    prakash v shah · 5 years ago `
    SO MANY REQUEST ,BUT NO ANY ONE AMC OR SEBI IS INTRESTED FOR ONE TYPE FORMAT APPL.FORM
    r c shah · 5 years ago `
    I agree with above suggestion common application forms
    B.MEGANATHAN · 5 years ago `
    I do agree with suggestion of common formats for AMC's
    G SURYANARAYANA · 5 years ago `
    I do agree with above suggestion and cheque should be given on registrars name and in the application we have to mention scheme names and AMC names along with client details thats it.With this system AMCs can save good amount and this amount can be used for Investors awareness progrmmes
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