Franklin Templeton Mutual Fund has transferred accrued brokerage income to SBI Mutual Fund, the court appointed liquidator. This according to industry experts essentially means that the liquidator will transfer this amount to the unit holders of six wound up schemes.
The fund house said that they have followed SEBI’s direction with regards to brokerage income.
A senior official of FT requesting anonymity said, “Basis directions received from SEBI, the brokerage accrued in the six schemes under winding up from April 24, 2020 to March 17, 2021 has been transferred to the court appointed liquidator. We will keep you updated on further developments in this regard.”
The official told Cafemutual that the fund house kept aside Rs.78 crore from brokerage.
A senior official from another fund house requesting anonymity said that this is not fair to distributors.“Firstly, this benefit will be given to investors of regular plans. So, this is injustice to direct plan investors. Another important factor is that this is distributors’ money and should not be given to anyone else. If RTAs are getting their fees, why can’t distributors get their share.”
Another official is of the view that such an income should go to investor education fund (IEP) as it is accrued income.
FT MF official said that they are exploring ways to help MFDs in this matter.
