In its annual general meeting (AGM) held on Tuesday in Mumbai, an AMFI board member has reportedly requested SEBI that the market regulator should allow fund houses to pay up to Rs.1000 as upfront commission to their distributors. This will help IFAs bear the cost of acquisition of a client, he said. The AMFI board member made this request to Madhabi Puri Buch, whole time member, SEBI during the AMFI AGM yesterday.
Four sources who attended the AGM told Cafemutual that there has also been a request on passing-on GST levied on distributor commission to investors. “Since commission has already come down, an additional burden of GST could hit distributors badly. Hence, the market regulator should approach the Finance Ministry to seek passing on the GST burden to investors,” said a CEO of an emerging fund house.
Other key suggestions were allowing insurance agents to distribute mutual funds and permitting investments in mutual funds on the basis of bank KYC.
Sources said that SEBI has given them patient hearing and said that they will consider these recommendations.
