SECURITIES AND EXCHANGE BOARD OF INDIA
INVESTMENT MANAGEMENT DEPARTMENT
Proposal on waiver of load for direct applications in Mutual Fund schemes
Currently all investors irrespective of the mode of entry are required to pay the entry load.
SEBI has stipulated that the loads collected by the Asset Management Companies (AMCs) for each scheme have to be maintained in a separate account and can be utilized towards meeting the selling and distribution expenses.
As per industry practice the load is normally utilized towards meeting the agent/distributor’s commission. So, the entry load collected from the investor normally goes towards paying the brokerage/commission of the distributor through whom the application was routed to the AMC.
Keeping in view the interest of the investors SEBI is now considering giving a waiver in entry load for direct applications received by the AMCs i.e. applications received through internet, submitted to AMC or collection centre/ Investor Service Centre that are not routed through any distributor/agent/broker.
Interested people may send in their
comments on this issue to firstname.lastname@example.org
or by writing a letter addressed to SEBI, Investment Management Department,
SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (E), Mumbai –
400051 on or before