Ch.6 · Distributor Commission Structure · medium
What action should a distributor take if they cannot comply with an investor's request that violates AMFI/SEBI regulations?
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EXPLANATION
If an investor requests an action that violates AMFI or SEBI regulations (e.g., accepting cash above ₹50,000), the distributor must refuse and explain the regulatory constraint. Compliance with regulations takes precedence over investor requests — the distributor cannot facilitate regulatory violations even at the investor's insistence.
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