SEBI has allowed fund houses to charge up to 2bps of the scheme AUM or actual cost whichever is lower from AMC book for operational expenses such as registration of SIPs, payment gateway charges, transaction platform charges, annual custody fees, call centres fees, RTA NFO charges, CKYC charges, KRA charges and so on.
However, SEBI has clarified that these charges have to be small in value and high in volume. In fact, SEBI has asked AMFI to make a list of these expenses in consultation with the market regulator through best practices circular. AMFI is expected to submit its recommendation soon.
SEBI said, “To have uniformity in charging expenses attributable to the scheme, which are not specifically covered in terms of SEBI regulations 1996, but are very small in value and high in volume. AMFI is advised to issue the list of expenses as mentioned in December 07, 2018 email. Such expenses can be paid out of AMC books at actual or not exceeding 2 bps of respective scheme AUM whichever is lower.”
Further, SEBI has cautioned that if they found AMCs misusing of this facility, they will take necessary action against such AMCs. SEBI said, “Misuse of the carve-out, if any, shall be viewed very seriously and necessary action against AMCs including withdrawal of the said carve-out facility may also be considered.”