AMCs are yet to come to a consensus over SEBI’s proposal to share one basis point of IAP corpus with AMFI.
A month back, AMFI, at the behest of SEBI, had sent a proposal to fund houses asking them to share 50% of the unutilized IAP corpus accumulated till March 2015.
“It has not been decided yet. We are trying to renegotiate it,” C.V.R. Rajendran, CEO, AMFI told Cafemutual. He said that the industry has Rs. 260 crore at its disposal for IAPs and AMFI will be open to suggestions on conducting IAPs.
While AMCs are happy to share the unutilized IAP corpus accrued till March 2015 with AMFI, not all AMCs are in agreement on giving away one basis point of the IAP corpus which will be accrued every month from April 2016.
“We don’t have a problem sharing the unutilized corpus with AMFI. But we are not ready to share one basis of IAP corpus,” said the sales head of a foreign fund house.
However, some say that AMCs are happy to share IAP corpus with AMFI. “As of now, AMCs are doing their own branding. AMFI’s advertisements will be neutral and brand agnostic,” said the CEO of a private sector fund house.
“It has been decided by AMFI and SEBI. If the industry body decides to conduct IAPs to promote mutual funds it is fair. There is no harm in sharing this corpus with AMFI,” said Dinesh Khara, MD & CEO, SBI Mutual Fund.
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