aimed at bringing back investors into the market by proposing set up a ‘know your client (KYC)’ registration agency (KRA) to undertake KYC for all investors in the securities market, providing incentives to distributors of mutual fund schemes and announcing rules to regulate big distributors.
The regulator said, However, there would be no transaction charge on transactions other than purchases/ subscriptions relating to new inflows, and direct transactions with the mutual fund.
Chairman of the Association of Mutual Funds in India (AMFI) and chief of HDFC Mutual Fund, Milind Barve told that the decisions taken by SEBI are a good for the future of the mutual fund (MF) industry. He said in an exclusive, “The MF move is not intended to increase cost for distributors. Instead, it is a good step towards regulation of Mutual Fund (MF) distributors in India.”