The Competition Commission of India (CCI) is investigating the Association of Mutual Funds of India’s decision to cap the upfront fees paid to mutual fund distributors at 1 per cent.
Confirming that the CCI is considering the content of numerous letters received from distributors across the country, Commission sources said there will be a thorough investigation to ascertain whether it is a case of cartelization.
Mutual fund distributors have questioned the locus standi of AMFI, a lobbying body, to limit the fees. Anticipating a backlash from MFs, most of the distributors’ letters addressed to the competent authority were anonymous, he said.
