Transaction charges for mutual fund distributors permitted on qualifying subscriptions, with disclosure, AMC deduction, and anti splitting safeguards. SEBI permits a structured transaction charge paid from qualifying subscription proceeds to distributors while excluding direct investments and non purchase flows; charges must be disclosed in bold, deducted by AMCs with net investment and units shown in statements, be subject to distributor level opt out only, and AMCs remain responsible for distributor malpractices and must detect folio splitting and complete folio de duplication within six months.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Transaction charges for mutual fund distributors permitted on qualifying subscriptions, with disclosure, AMC deduction, and anti splitting safeguards.
SEBI permits a structured transaction charge paid from qualifying subscription proceeds to distributors while excluding direct investments and non purchase flows; charges must be disclosed in bold, deducted by AMCs with net investment and units shown in statements, be subject to distributor level opt out only, and AMCs remain responsible for distributor malpractices and must detect folio splitting and complete folio de duplication within six months.
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