Sebi allows mutual funds to pay incentives to distributors for new investors from beyond top 30 cities and first-time women investors, capped at Rs 2,000
An analysis of MF commission data by Kotak Institutional Equities shows that non-bank distributors accounted for 75 per cent of total commission payouts in FY25, up from 65 per cent in FY18
In economics, the concept of a Laffer curve suggests that there is an optimal tax rate beyond which increasing the rate will not result in an increase in government revenue
Fund houses initiate discussions, roll out training programs for distributors
Urge regulator to ensure MF distribution remains financially viable
Move comes days after Sebi suspended practice citing misuse
Just 4% growth in registration of direct plan SIPs last year after 115% growth in 2021
Between October 2021 and September 2022, gold prices rose over 9.5 per cent even as ETF inflows shrunk to a half
Amfi has barred them from using nomenclatures that have references to advisors, following Sebi move to separate distribution and advisory for the Rs 27-trillion industry
Switching from one scheme to another is treated as transfer and is subject to capital gains tax
Investors can get these loans at 9-10 per cent interest rate
Experts say nudge towards direct plans, regulatory changes and market correction have led to cuts
There are only 220,217 MF distributors compared to 2.1 million insurance agents
Sebi proposes that distributors giving such advice would have to register under Sebi's IA Regulations