Mutual fund distributors have approached the Securities Appellate Tribunal (SAT) against the regulator’s direction to disclose the commission received from every individual investor, three people familiar with the development said.
“Distributors, represented by United Forum of distributors, have challenged Sebi’s (Securities and Exchange Board of India’s) circular on folio-wise disclosure of commission or disclosure of commission paid for every individual investor, in SAT,” said one of the three people cited above. He declined to be named. “Sebi has been asked to file a reply in four weeks, explaining why the circular is in the interests of the market.”
