Transaction Charges Paid to Mutual Fund Distributors
Transaction Charges Paid to Mutual Fund Distributors
- Paragraph 10.5 read with Paragraph 10.4.1(b) of the SEBI Master Circular for Mutual Funds dated June 27, 2024 (“Master Circular”) permitted Asset Management Companies (AMCs) to pay transaction charges to distributors, subject to a minimum subscription amount of ₹10,000 brought in by such distributors.
- A public consultation on this matter was conducted in May 2023, followed by an industry consultation in June 2025.
- Based on feedback received from the industry and considering that distributors, as agents of AMCs, are entitled to be remunerated by AMCs, it has been decided to discontinue the transaction charges or commission as prescribed under Paragraphs 10.4.1(b) and 10.5 of the Master Circular.
- Accordingly, Paragraphs 10.4.1(b) and 10.5 of the Master Circular stand deleted with immediate effect.
- This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 52(4A) of the SEBI (Mutual Funds) Regulations, 1996, to protect the interests of investors in securities, and to promote the development of, and regulate, the securities market.
Go To SEBI
Read More on SEBI
