SEBI mulls new incentive structure for MF agents

A panel set up by SEBI to boost mutual fund investments through distributors is considering a new incentive model, wherein investors could be asked to pay a service fee and commissions would be borne by fund houses.

The proposals also involve a single-cheque payment for the combined amount of the agreed investment and service fee or transaction cost, which could be capped at an amount between Rs 100-200 per transaction, an official said.

However, the distributors might be subjected to a stricter regulatory framework along with their new payment structure, so that investors are not misled by them, he added.

The panel, comprising SEBI's whole-time member Prashant Saran and representatives of the mutual fund industry and one investor association, was set up late last month and has had two meetings so far, the latest being on Friday last.