The regulator eases norms for retired officials to participate in the fund distribution space.
SEBI, in its recent circular to boost the mutual fund industry has made it easier for a certain category of officials to be a part of the mutual fund distribution space.
According to SEBI circular, a new cadre of distributors,
such as postal agents, retired government and semi-government officials (class
III and above or equivalent) with a service of at least 10 years, retired
teachers with a service of at least 10 years, retired bank officers with a
service of at least 10 years, and other similar persons (such as bank
correspondents) as may be notified by AMFI/AMC from time to time, shall be
allowed to sell units of simple and performing mutual fund schemes. The schemes
include diversified equity schemes, fixed maturity plans (FMPs) and index
schemes and which have returns equal to or better than their scheme benchmark
returns during each of the last three years.
“This move of SEBI is in the right direction because it
will help the fund houses to penetrate into tier II cities,” said sales head of
a top mutual fund house.
The new set on distributors need a simplified form of NISM certification and AMFI registration. AMFI shall also create a unique identity number for this set of distributors, in addition to the ARN code of the distributor. This unique identity number has to be mentioned in the mutual fund application form.
