AMFI has approached SEBI seeking clarification on keywords that can be used and cannot be used by MF distributors.
NS Venkatesh, CEO, AMFI said that the industry body has sent its representation to SEBI and requested the market regulator to shed more light on MFD nomenclature.
Last month, SEBI had asked MFDs using nomenclature like independent financial adviser, IFA, wealth adviser or any other similar name like independent financial intermediary to incorporate changes to their ARN. The regulator has set a deadline for incorporating these changes to their ARN by September 30, 2020 or their company name by December 31, 2020.
Over the last few days, many distributors have been seeking clarity on keywords like usage of wealth, money and consultancy along with their company name.
Venkatesh further said that AMFI has asked the regulator to restore the cut off time for subscription and redemption in mutual fund schemes to 3 pm.
In April 6, SEBI had revised the cut-off timing for all MF transactions after RBI reduced trading hours of various RBI regulated securities.
Currently, the cut off timing for subscription in liquid funds and overnight funds is 12.30 pm instead of 2 pm. Similarly, for subscription of equity funds and debt schemes, the cut-off timing is 1 pm irrespective of ticket size. The cut-off timing for redemption is 1.00 pm for all funds.
