SEBI Scraps ₹10,000 Minimum Transcription Fee For MF Distributors

The Securities and Exchange Board of India has removed the mandatory minimum transcription charge of ₹10,000 paid by asset management companies to mutual fund distributors.

The move, effective from Thursday, follows feedback from public and industry consultations. In a circular, SEBI said the charges or commissions outlined in Paragraphs 10.4.1.b and 10.5 of the master circular will no longer apply.

The regulator noted that since distributors act as agents of AMCs and are entitled to be remunerated by them, the earlier mandated charge is being scrapped.