Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: VAT Audit :: cpt :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: TDS :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: due date for vat payment
 
 
News Headlines »
 Directions under section 119 of the Income-tax Act, 1961
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful

SEBI panel to discuss curbs on payouts
May, 31st 2010

Concerned at liberal payouts to distributors by mutual funds possibly at investors' cost, SEBI will consider imposing curbs on expenses that MFs charge from investors on Monday.

"The SEBI committee will meet tomorrow to take up the issue of expenses that mutual funds charge from investors annually," a key source told PTI.

The SEBI Mutual Fund Advisory Committee, comprising SEBI and MF industry people, is concerned that the fund houses are doling out lavish gifts to their distributors to encourage them bring in more business, the source said.

Currently, the MF industry keeps its expense ratio at 2.25 per cent, which it deducts annually from investors' net assets value (NAV).

"SEBI is of the view that the MFs should either bring down their expense ratio to 1.5 per cent and spend it as they want or cap its management expenses to 1.25 per cent and charge the remaining expenses at the rate of 1 per cent on actual basis," the source said.

The sources said that in the initial stages, the advertisement expenses of the fund houses are quite high which are recovered from the customers. Also, there are concerns that the MFs are spending too much on promotional expenses on products, which includes arranging foreign trips for distributors.

Further, the fund houses have come under the scanner of market regulator Securities and Exchange Board of India (SEBI) for allegedly lavishing their agents and distributors with incentives like cash payouts and foreign junkets in return for higher sales.

Instances of distributors of various fund houses being showered with cash incentives as also trips to exotic locations in India and abroad have come to light, especially since the scrapping of entry-load from investors last year.

A senior official at a leading fund house, however, defended the incentives saying such practices are prevalent across the various industries like pharmaceuticals and consumer goods where distributors are treated with much more expensive gifts and more frequent foreign trips.

"We do assure some gifts to distributors to incentivise products, but not to the extent of mis-selling any scheme. Such a practice is common in corporate parlance...I think SEBI is concerned about the probable mis-selling by some distributors," Axis MF managing director and CEO Rajiv Anand said.

The mutual fund distributors are said to be have been in a disarray ever since the fund houses were barred by SEBI from charging any entry-load from investors. Entry load is the commission that an investor has to pay while purchasing units of a mutual fund.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions