You have only 12 days or to be precise, just 6 business days to claim your pending commission.
SEBI has asked fund houses to pay withheld commission including upfront commission earned before October 22, 2018 till August 20, 2019. This means fund houses cannot pay your withheld commission after the stipulated date. So far, there was no specific time limit for AMCs to pay withheld commission.
Since most MF officials Cafemutual spoke to said that SEBI is unlikely to give further extension to AMCs to pay withheld commission to distributors, you will have to ensure such a compliance on time to receive your pending commission.
You can receive your withheld commission subject to fulfilment of all requirements. AMCs withhold commission including upfront commission for a number of reasons such as failed transactions, incomplete KYD, pending KYC, and so on.
In most cases, AMCs have withheld commission due to pending KYC. Industry experts believe that many investors who invested before January 1, 2012 did not comply with KYC norms due to frequent regulatory changes. In fact, AMFI has estimated that the mutual fund industry has 99 lakh folios without PAN as on May 31, 2019.
You can avail report on incomplete KYC and pending brokerage on RTAs website such as CAMS and Karvy Fintech.
