SEBI has invited public comments on Sumit Bose committee report which has recommended sweeping changes in product and commission structure of mutual funds.
Earlier in November 2014, the Finance Ministry had constituted a nine-member committee to review distribution incentives across financial products, rationalize commission structure and recommend measures to curb mis-selling. The committee, headed by Sumit Bose, former Union Finance Secretary, had submitted the report in August which was made public on September 3.
Among its key recommendations are doing away with upfront commission and practice of ‘upfronting of commissions’, introduction of reducing AUM based trail commission and leveling commission across T15 and B15 distributors.
Recently, AMFI has invited feedback on this report from its board members.
SEBI has given a format to send comments or suggestions in a notification issued on Monday. Also, the market regulator has asked people to explain the rationale behind their suggestions.
The comments can be sent to paragb@sebi.gove.in and vimalb@sebi.gov.in or by post to Parag Basu at SEBI head office situated at Bandra Kurla Complex in Mumbai.
