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Amfi to block MF distributors indulging in 'splitting of transactions'

Amfi shall take necessary action i.e. blocking of such MF distributors for a period of six months: Sebi

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Amfi | SEBI | Stock Market

Abhishek Kumar  |  Mumbai 

File photo: PTI
The industry body has also asked the RTAs to verify the 'violators' data sent by the markets watchdog

The (Sebi) has asked the Association of in India (Amfi) to identify and block mutual fund (MF) distributors who indulge in 'splitting of transactions' for higher transaction fees.

MF distributors are allowed to charge clients a transaction fee of Rs 100 to Rs 150 for every lumpsum investment or registration of a systematic investment plan (SIP) if the investment amount is above Rs 10,000.

The regulator said it has identified a number of instances when MF distributors have invested clients' money in through more than one application when it could have been done in one go. " shall take necessary action i.e. blocking of such MF distributors for a period of six months," said.

On its part, has written to registrar and transfer agents -- CAMS and KFin Technologies -- asking them to share details of MF distributors who indulge in splitting of transactions on a monthly basis from October 2022. The industry body has also asked the RTAs to verify the 'violators' data sent by the watchdog.



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First Published: Fri, September 23 2022. 20:20 IST
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