Ch.4 · SEBI Mutual Fund Regulations · medium
What was the major regulatory change regarding distributor commissions implemented by SEBI in 2018?
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EXPLANATION
In September 2018, SEBI banned upfront commissions for mutual fund distributors. All distributor compensation must now be in the form of trail commissions paid monthly from the scheme's TER. This aligned distributor incentives with long-term investor holding.
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