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

The Securities and Exchange Board of India (Sebi) has asked the Association of Mutual Funds 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 markets regulator said it has identified a number of instances when MF distributors have invested clients' money in mutual funds through more than one application