Mutual funds industry: Need more feet on Street
to the whole exercise, AMFI decided to provide a window during which we would waive off the fees completely making the registration free of cost. This would mean that any individuals either in the normal cadre or the new cadre can register themselves as a distributor for the first time free of cost during five months from February 1, 2013 to June 30, 2013. All required formalities for registration, like passing the required certification, etc, need to be completed for registration.
Under the new cadre, we have also included the following two categories:
Intermediaries/Agents engaged in distribution of financial products e.g. insurance agent, FD agent, National Savings Scheme products, PPF, etc registered with any other Financial Services Regulator.
Business correspondents
The new cadre that has been announced is a very interesting move. This cadre is allowed to sell only performing Diversified Equity Funds, Fixed Maturity Plans and Index Funds. These category funds come with low risk. Therefore, for the new cadre, who will undergo a very simple examination specially devised by NISM.
With only simple products available for this cadre, they would be able to reach out to more people to sell these less risky products.
At present, we have close to 50,000 distributors registered with AMFI. With this move, we expect that about one lakh more distributors may be added to the fold. With such large force, the industry would then be in a position to grow, expand and penetrate into smaller towns. We also expect that
Be the first to comment.
