Transaction charges paid to Mutual Fund Distributors

SEBI, via Circular SEBI/HO/IMD/IMD-PoD-1/P/CIR/2025/115 dated August 8, 2025, has removed the provision allowing Asset Management Companies (AMCs) to pay transaction charges to mutual fund distributors for bringing in minimum subscriptions of ₹10,000, as specified in paragraphs 10.4.1.b and 10.5 of the Mutual Funds Master Circular dated June 27, 2024. This change, effective immediately, follows public and industry consultations and reflects SEBI’s stance that distributors, as agents of AMCs, should be remunerated directly by the AMCs through other means rather than fixed transaction charges.

Link: https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/aug-2025/1754653881911.pdf#page=1&zoom=page-width,-15,842