Press Trust of India / New Delhi Aug 07, 2009, 21:37 IST
Market regulator Securities and Exchange Board of India (Sebi) today asked Asset Management Companies not to discriminate between mutual fund holders while charging exit load.
"In order to have parity among all classes of unit holders, it has now been decided that no distinction among unit holders should be made based on the amount of subscription while charging exit loads," Sebi said in a statement here today.
The regulator said that it was observed that the mutual funds are making distinction between the unit holders by charging differential exit loads based on the amount of subscription.
An exit load is the commission that an investor has to pay at the time of selling off the mutual funds. As the name goes, it has to be paid while exiting the mutual fund.
"The mutual fund may charge the load within the stipulated limit of seven per cent and without any discrimination to any specific group of unit holders," the statement said.
Mutual fund companies have to disclose the charge that they levy on their customers at the time of exit.
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