The Securities and Exchange Board of India (SEBI) has warned mutual funds that it will crack the whip if they continue to defy the best practices guidelines on distributor commissions put together by their trade body three years ago.
Ajay Tyagi, chairman of the capital market regulator, told mutual fund chief executives at a recent meeting that Sebi may issue norms to cap distributor fees as it looks to stamp out product misselling, according to people with knowledge of the matter.
