Chief executives of fund houses met SEBI chairman U K Sinha today to discuss about upfront commission issue.
Majority of mutual fund chief executives who reportedly met SEBI chief U K Sinha today to give their feedback on the commission structure, suggested that both upfront and trail are required to grow the industry.
“Some
of them hinted at regulating commissions. Majority of them suggested both
upfront and trail are required. He
didn’t make any remarks,” said the CEO of a private sector fund house who
attended the meeting.
According to a CEO who attended the meeting, SEBI chief heard them patiently.
AMFI board is likely to take up this issue for discussion in its board meeting scheduled on December 22.
The industry seems to be divided over this matter. Some AMCs support an all trail model while others say that there need not be a change in the current pricing structure.
Apart from upfront commissions, MF CEOs apprised U K Sinha about the progress made by the industry in B15 towns and the recent revival in retail interest in equity funds.
