SEBI asks for status check on due diligence of large distributors from AMCs
Mumbai: The due diligence process for big distributors is likely to begin from December end, says AMFI. Meanwhile market regulator SEBI has sought the status on the progress of implementing the same from AMCs.
The cost for putting in place this system will be borne by fund houses. It is estimated that around 549 distributors across India will fall under SEBI’s sales guidelines rules.
AMFI is the process of short listing at least two to three audit agencies that will carry out the due diligence on behalf of AMCs. Cafemutual first reported this development on 13 September 2011.
Read here: MF distributor compliance likely to be outsourced to an audit firm
SEBI has listed out a detailed compliance and risk management to be followed by distributors in its August 22 circular.
