SEBI announces a host of changes for distributors.
The SEBI Board today decided to slash the NISM and AMFI registration fee for selling mutual funds. However, the exact reduction in fees is not decided yet.
The regulator has also decided to allow distributors to opt out of transaction charges on the basis of schemes. Earlier, distributors were either allowed to charge all of their clients and not charge at all. This was creating a lot of accounting problems.
To broad base the distribution network, the regulator has proposed that postal agents, retired officials from government, banks, retired teachers etc. should be roped in for distributing simple products. SEBI has also decided to introduce varied levels of certification and registration depending on products & services offered by distributors.
To reduce mis-selling, SEBI has asked AMCs to create a system of identification of actual sales personnel of distributors, evolve a system of 'product labeling' and inclusion of mis-selling as a 'fraudulent and unfair trade practice' in SEBI Regulations.
