Sebi tells mutual funds to enforce Amfi guidelines

The Amfi guidelines also ask intermediaries to refrain from recommending inappropriate products

The Securities and Exchange Board of India has asked fund houses to follow the 'best practices' guidelines issued by the Association of Mutual Funds in India (Amfi).

It has reiterated the need for sticking to guidelines that stipulate a cap on payment of upfront commission to distributors. Issued by Amfi to take effect from April 2015, this had capped upfront commission at 100 basis points (bps).

“The regulator has said it is high time the industry players followed the guidelines in both letter and spirit,” said the chief executive of a fund house. 

To shore up assets in a rising market, funds resorted