The fee for a one-day training program for new cadre of distributors would be kept low.
National Institute of Securities Markets (NISM) is soon expected to introduce a simplified certification for the new cadre of distributors, according to sources close to the development. The new cadre of distributors would be required to appear for a one-day training program in mutual funds to be conducted by NISM empanelled trainers. Fund officials say that these distributors won’t be required to clear any examination.
SEBI had identified postal agents, retired government and semi-government officials, retired teachers and bank officers, bank correspondents as the new cadre to be tapped to sell mutual funds.
The cost for this simplified certification is expected to be nominal at around Rs 500. Fund officials say that AMCs would be happy to bear this cost so that they could expand their distribution force. Currently, distributors have to attend two-day training program to renew their ARN licenses. (The fee works out to Rs 3400 if opted for two-day consecutive training and Rs 3600 if opted for two single day trainings).
Also read: SEBI asks AMFI to expedite process of roping in new cadre of distributors
