Ch.4 · AMFI Code of Conduct · hard
What is the 'clawback' mechanism in mutual fund distribution commissions?
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EXPLANATION
Clawback refers to the practice where AMCs recover upfront commissions paid to distributors if the investor redeems within a specified period (typically 1 year). Since SEBI banned upfront commissions in 2018, clawback is no longer directly applicable but the concept is still tested for historical context.
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