Capping scams: AMFI revises code of conduct for mutual fund intermediaries
The entities working in mutual fund segment have also been asked to provide their cooperation and support to AMCs (Asset Management Companies), AMFI, regulatory authorities and applicable due diligence agencies in relation to the activities of the intermediary or any regulatory requirement.
AMFI has directed intermediaries to maintain the requisite documentation in respect of the 'Advisory' or 'Execution Only' services provided by them to the investors.
"Do not indulge in fraudulent or unfair trade practices of any kind while selling units of Schemes of any mutual fund," AMFI has told the intermediaries.
"Selling of units of schemes of any mutual fund by any intermediary directly or indirectly by making false or misleading statement, concealing or omitting material facts of the scheme, concealing the associated risk factors of the schemes or not taking reasonable care to ensure suitability of the scheme to the investor will be construed as fraudulent/unfair trade practice," it said.
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