No entry fee on MFs from Aug 1: SEBI

Reuters
Posted: Wednesday, Jul 01, 2009 at 1147 hrs IST
Updated: Wednesday, Jul 01, 2009 at 1147 hrs IST

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Mumbai: Indian mutual funds can not levy any entry charge for investments from August 1, the Securities and Exchange Board of India said in a note late on Tuesday.

Funds could, however, levy an exit fee of up to 1 per cent of the redemption amount to pay commissions to distributors and for marketing and selling expenses, it added.

The regulator said investors would pay any upfront charge to distributors directly based on his service. It also directed distributors to disclose commissions payable to them by fund houses.

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