The brokerage will reflect upfront and trail commission paid by a fund house during FY 2010 - 11 across all schemes
Mumbai: From November 10 onwards fund houses will start declaring brokerages paid to large distributors on their websites following a recent SEBI diktat. The brokerage will reflect upfront and trail commission paid by a fund house during FY 2010 - 2011.
Some fund houses will disclose consolidated brokerage to protect the privacy of distributors while other AMCs will disclose the names of distributors as per the format given by SEBI.
The industry was abuzz with fears of having to disclose each distributor’s name and their brokerage. Some fund houses are still discussing internally the format of disclosure. This is the first time in any financial service industry where the commissions are being disclosed. Currently AMCs disclose brokerage in their balance sheets.
The disclosure will be limited to those distributors who have received commission of Rs 1 crore per annum across industry or Rs 50 lakh from a single AMC.
