Mutual fund revival plan started: Sebi
As per the proposals approved by Sebi's board on August 16, the Securities and Exchange Board of India (Sebi) said, a number of steps are being taken to increase the penetration of MF and to energise the distribution network while protecting the interest of investors.
Among the measures announced today, the MFs can charge up to 30 percentage points of additional TER (Total Expense Ratio) -- a fee charged to investors for MF investments under fund management and other heads -- if the new inflows from beyond top 15 cities are at least 30 per cent of gross new inflows in the scheme or 15 per cent of the average assets under management (year to date), whichever is higher.
The top 15 cities would be decided on the basis of data compiled by the Association of Mutual Funds in India (AMFI) data for 'AUM by Geography - Consolidated Data for Mutual Fund Industry' as at the end of the previous financial year.
MFs would need to make complete disclosures in their half yearly report to Sebi regarding the efforts to increase geographical penetration and the details of opening of new branches, especially those beyond top 15 cities.
In another step, Sebi has allowed MFs to charge service tax on investment and advisory
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