The Association of National Exchanges of Members of India has moved market regulator SEBI to advice the Association of Mutual Funds in India to reduce the distributor registration charges for stock broking firm.
While the registration fee for private limited company is ₹20,000 and renewal fee (every three years) is ₹10,000, the same for public limited company is ₹4 lakh and ₹2 lakh respectively.
The fee structure for many of the public limited brokers is exorbitant at 20 times more than that of private limited. In order to obtain the benefit of lower fees, many stock brokers are obtaining registration in another entity to carry out the MF distribution business which is leading to unnecessary compliance expenses, said ANMI.
On request from ANMI, the MF industry body had said AMFI fee classification and ARN fee structure are based on legal status of the entities and all entities under a particular category are charged the fees uniformly, irrespective of their size, net-worth or AUM.
ANMI requested Advisory Committee on Mutual Funds to correct the anomalies in the interest of the market besides to promote ease of doing business, it added.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.