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ICICI Securities will exit its sub broking MF distribution business soon.
In a communication sent to sub brokers, the national distributor has asked its partners to segregate their AUM within 3 months or by Jan 10, 2025.
The company said it will stop paying trail commission to distributors if they do not exit the business. It said, “In view of the same, we regret to inform you that we would be terminating our Independent Financial Associate (IFA) agreement and this communication shall be treated as prior notice for termination of the partnership agreement with effect from 10th January 2025 and commissions applicable shall be payable till 10th January 2025 provided valid certifications/ARN/EUIN are updated in our records.”
Sharing the rationale, the national distributor said that the sub broking business does not align with their long-term goals. It said, “Due to review of Business strategies and in order to align with long term goals, we have decided to make changes in our current process and business relationship.”
ICICI Securities managed AUM of Rs.62,600 crore in March 2024. The company received gross commission of Rs.520 crore in FY 2024.
