TMI BlogMutual Funds- Empowering investors through transparency in payment of commission and load structureX X X X Extracts X X X X X X X X Extracts X X X X ..... Madam/ Sir, Sub: Mutual Funds- Empowering investors through transparency in payment of commission and load structure 1. SEBI has been taking various steps to empower the investors in mutual funds by way of more transparency in the loads borne by the investor so that the investor can take informed investment decisions. Towards this end, SEBI had earlier abolished initial issue expenses and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt is used by the AMCs to pay commissions to the distributors and to take care of other marketing and selling expenses. It has been left to the AMCs to credit any surplus in this account to the scheme, whenever felt appropriate. In order to incentivise long term investors it is considered necessary that exit loads/CDSCs which are beyond reasonable levels are credited to the scheme immediately. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... distributor and to take care of other marketing and selling expenses. Any balance shall be credited to the scheme immediately. d) The distributors should disclose all the commissions (in the form of trail commission or any other mode) payable to them for the different competing schemes of various mutual funds from amongst which the scheme is being recommended to the investor. Applicability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors immediately and monitor compliance. 8. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
