Sebi, Amfi incentives bring back mutual funds distributors
According to Association of Mutual Funds of India (AMFI) data, renewals in December have shot up to 875 from around an average of 500 in the previous months.
The number of ARN renewals for the industry rose from 418 in October to 535 in November before jumping to 875 in December. The industry also witnessed more than 700 new registrations in the quarter ended December 2012.
While the growth in the markets and thereby a revival in investor sentiment is said to have played a role, the Securities and Exchange Board of India’s (SEBI) move in August to make the distribution business more attractive has also had an impact. In August 2012, Sebi allowed mutual funds to charge an additional expense ratio of up to 30 basis points if they bring at least 30 per cent of the total inflow from locations beyond top 15 cities.
“There is a trend emerging and people are slowly coming back. Over the last few months we have seen money coming through distributors who had registered long back but have done business for us for the first time,” said A Balasubramanian, CEO, Birla Sun Life AMC.
AMFI deputy CEO, V Ramesh, said that it is a good trend and seems to be a result of better revenues, growing market and also reduced cost for
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