Buckling under pressure from distributors, mutual fund industry body AMFI is lobbying hard to dispense with a proposed move to make it mandatory to disclose individual agent commission in the account statements sent to investors, but regulator Sebi is firm on its stand.
Sebi is of the view that such disclosure will help boost transparency as investors have a right to know what portion of their money the mutual fund was giving to the distributor as commission, a senior official said.
The regulator also feels that the mutual fund industry would be a 'net gainer' in the longer term as voluntary disclosure of such kinds will help address 'trust deficit' with investors, the official said, while adding that Sebi would have to step in with an order if fund houses do not adopt this practice on their own.
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