Regulatory Alerts2025-08-08
Deletion of Transaction Charges Paid to Mutual Fund Distributors
The Securities and Exchange Board of India (SEBI) has deleted paragraphs 10.4.1.b and 10.5 of the SEBI Master Circular for Mutual Funds, thereby eliminating the prescribed transaction charges or commissions paid to mutual fund distributors. This regulatory change follows industry feedback received during consultations in 2023 and 2025, recognizing that distributors, as agents of Asset Management Companies, are entitled to remuneration through other means. The circular, issued under Section 11(1) of the SEBI Act, 1992, comes into immediate effect to protect investor interests and regulate the securities market.
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