6000 distributors will start getting transaction charge from AMCs every month
Mumbai: The Rs. 100/Rs. 150 transaction charges proposed by SEBI’s advisory panel will be implemented from November 01, said three people familiar with the development. Cafemutual had earlier reported that approximately 6000 ARN holders have opted in for transaction charges.
There has been a mixed reaction from big distributors on opt in/opt out of the transaction charges. The payouts will be paid to distributors along with the brokerage after deducting a service tax of 10.30%. Thus Rs. 89 will be paid for existing investments and Rs. 134.55 for new investors after deducting the service tax. The transaction charges will be paid along with the brokerage by AMCs on a monthly basis.
SEBI has asked fund houses to monitor distributors who might split applications to earn higher commissions. It has asked AMFI to take appropriate action if any distributor is found acting against the interests of investors. Most mutual fund officials have termed the compensation as “something is better than nothing”.
