Mutual fund industry seeks Sebi intervention in distributor commissions

While the Sebi has repeatedly asked AMCs to stick to the guidelines issued by industry body Amfi, industry participants said there are several cases where guidelines are being blatantly violated

The mutual fund (MF) industry is seeking the Securities and Exchange Board of India’s (Sebi’s) intervention in capping distributor commission. 

According to sources, certain players in the industry have recently written to Sebi, requesting a formal circular on the maximum commission to be paid to sellers of mutual fund products.

While the market regulator has repeatedly asked asset management companies (AMCs) to stick to the ‘best practices’ guidelines issued by industry body Association of Mutual Funds of India (Amfi), industry participants said there are several cases where these guidelines are being blatantly violated. According to Amfi guideline, the upfront commission