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AMFI committee has reportedly recommended MF CEOs to give in writing to SEBI that they will not misuse B30 norms once B30 incentives restart, said two senior officials requesting anonymity.
One of the MF officials told Cafemutual that this can make MF CEOs responsible if their company or their distributors misuse B30 norms. “There is a recommendation in which MF CEOs will have to write to SEBI that the fund house will not misuse B30 norms and not let any distributor misuse B30 norms. Also, we have been advised to give declaration that B30 incentives of distributors will only be paid after checks and balances through a system.”
Another senior official said that while they have received such a recommendation from AMFI committee, the final decision will be taken after due deliberation.
Currently, RTAs have been tracking MF transactions where purchase and redemption happen frequently to curb instances of churning and check mis-selling. Both CAMS and Kfintech reportedly submit a report to AMCs on folios where purchase and redemption happen within five working days or a week’s time.
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.
