Overseas training or vacation? Sebi puts kibosh on MFDs' foreign 'perks'

Amfi's hammer fall: No 'incentivisation programmes' beyond Indian shores

Certain mutual fund distributors (MFDs) have been offering foreign trips to their sub-distributors under the guise of ‘training programmes’ despite clear guidelines against it, the Association of Mutual Funds in India (Amfi) said in a letter to fund houses and MFDs.

The industry body added that the regulator, the Securities and Exchange Board of India (Sebi), has taken the issue seriously and called for an appropriate deterrent mechanism.

“It is observed that despite very clear Amfi guidelines to deter and avoid incentivising the distributors/sub-distributors for garnering higher business by way of foreign trips or trips to exotic