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The payment of B30 incentives will not happen any time soon as AMFI is yet to find a way to stop misuse of B30 norms by AMCs and distributors, said three people aware of the development.
One of the officials quoted above said that the industry is awaiting SEBI guidelines on the payment of B30 incentives. “AMFI has sought SEBI’s intervention on this matter as the industry is yet to come out with a mechanism to curb mis-use of B30 incentives by AMCs and MFDs. We are confident that SEBI will address this issue in its upcoming board meeting.”
Another official requesting anonymity said that SEBI has earlier expressed its intention that the industry should do away with this practice if it is difficult for AMCs to monitor the misuse of B30 norms. SEBI expects that the new system should be able to track instances of splitting of transaction, churning and calculation of B30 incentives, he added.
Earlier, AMFI barred fund houses from charging additional expenses in lieu of B30 retail assets from March 1. The trade body clarified that the temporary suspension will be lifted once fund houses put in place a mechanism to monitor and track misuse of B30 incentives by distributors/AMCs.
