Opposing the mandatory disclosure of commissions paid by mutual funds (MFs) to distributors, agents selling such financial products have requested regulator Sebi to scrap the directive saying it would be detrimental to the growth of the industry.
For greater transparency in dealings of mutual funds, Sebi had asked MF houses to disclose to investors the commissions paid to their distributors, including payouts in the form of gifts, trips and sponsorships from October in the consolidated account statement (CAS) sent to investors.
