I passed NISM and ready to register for ARN. Can you of the Distributors here help me start the business? I need some of my doubts cleared from an experienced person. Kindly email me. Thank you.

SEBI MUST LOOK BEFORE TAKING ANY DECISION FOR THE COST OF DISTRIBUTER INCURED BY FOR PROVIDING ADVICE AND SERVICES. A DISTRIBUTOR WILL GET AROUND RS 70-80 AFTER PAYING TAXES. AND THE COST FOR VISITS/ CALLS/FUELS/LATER SERVICES/ MAINTAING RECORDS/DATABASE/ COST OF SUB STAFF/COST OF RUNNIG OFFICE /COMPUTERS ETC ETC. SPECIALLY COST OF SERVICING IN RURAL AREAS WILL BE MUCH HIGHER AS THE FUEL COST/TRAVELLING COST WILL BE MUCH HIGHER AND REMUNARATION OF RS 60-70 DOESNOT SEEMS TO BE REASONABLE. IF INVESTOR WANTS TO MANAGE THEIR FUNDS EFFICIENTLY BY EXPERTS, THEY SHOULD BE READY TO PAY FOR REIMBURSEMENT OF EXPENSES AND MANAGEMENT FEE. MY SUUGGESTION TO THIS PROBLEM IS TO STUDY THE PATTERN IN OTHER 20-30 COUNTRIES (WAY OF REIMBURSEMENT TO DISTRIBUTORS) AND SHOULD COME OUT WITH SOLUTIONS AS IT IS VERY DIFFICULT TO PENETRATE IN RURAL AREA FOR SMALL INVESTORS, MOSTLY EVEN DO NOT BELIEVE IN EQUITY INVESTMENTS. IF INVESTORS IN EUROPE, US ARE PAYING IN PERCENTAGE TERMS, WHY SHOULD NOT IN INDIA.

Charging RS 100 IS JUST LAUGHABLE!!!!NOWADAYS EVEN PLUMBER OR ELECTRICIAN COME TO OUR HOUSE DOESN'T CHARGE LESS THAN RS 250!!!IT SEEMS THERE IS NO VALUE OF ADVICE!

Dear friend Nagaraj,very well said by you about working and renemuration to SEBI staff,and still lakhs of cases pending in SEBI from investors, Is SEBI not accountable to investors?should not be their salaries linked to their efficiency of sorting out investors complaints and the surveliance mechanism of their staff and their efficiency in protecting investors money? why not all these things to be linked to their salaries and perks and bonuses? Those who live in galss houses should not dare to throw stones on outsiders.

Transaction fees of Rs.100 - Rs. 150 will be charged on both type of investor either direct or through IFA

LAST YEAR SEBI BOARD MEMBERS OVERNIGHT INCREASED THEIR REMUNERATION BY THREE FOLD !! No Investor/ Agent knows how big is their monthly bill. SO MANY SCAMS HAVE TAKEN PLACE UNDER SEBI'S NOSE. LAKHS OF CUSTOMERS HAVE LOST THEIR LIFE TIME SAVINGS IN CRB / NBFC/ SATHYAM/ HARSHAD/ PAREKH etc.SCAMS. SEBI did nothing to get back money to InvestorS. WHY NOT SEBI BE MORE TRANSPERENT ? I SUGGEST SEBI AS A ROLE MODEL, SHOULD PUBLISH IN FINANCIAL DAILIES ONCE A QUARTER THE TOTAL SALARY/ PERQUISITES/ ALLOWANCES/HOTEL/ENTERTAINMENT BILLS ETC. DRAWN BY EACH MEMBER. THUS JUSTIFY BEFORE INVESTORDISTRIBUTORS FRETERNITY THAT SEBI IS AN ASSET AND NOT A LIABILITY TO THE NATION ! THAT THEY ARE WORKING FOR INVESTORS BENEFIT, AND NOT DRIVING INVESTORS TO A DEEP SEA, LIKE PIED PIPER ! WHYNOT SEBI BE MORE TRANSPERENT.

SEBI'S NEW SLOGAN ? -BEWARE-BEWARE-BEWARE!! EVERY DISTRIBUTOR IS A MONSTER LOOTING INVESTORS !! EVERY INVESTOR IS TRYING TO LAUNDER HIS BLACK MONEY !!

A NEW RULE OF CHARGING RS. 100/- ON EXSTING AND RS.150/- ON NEW CUSTOMER IS ABSOLUTELY ENCOURAGE NEW DISTRIBUTOR BUT NOT TO A PROFESSIONAL DISTRIBUTOR. IF SEBI WANT A REAL GROWTH AND BECOME A PROFESSIONAL FIELD OF DISTRIBUTOR, THERE SHOULD NO NEED OF SUCH LIMIT. IS THERE IS SUCH SYSTEM OF CHARGING IN CA, CS, ICWA, DOCTOR, LAWYER ? A STEP WILL INCREASE QUANTITIVE DISTRIBUTOR AND NOT INCREASAE PROFESSIONAL DISTRIBUTOR.

The SEBI should have made the transaction charges compulsory for every investor(direct or indirect). I do not understand why everyone says that the retail sales has lost its momentum.I feel its good distributors are not make their investors make lumsum investment in equity fund.In the past 2 years what return has the equity funds delivered? Focussing on SIPs is the right strategy and if we see the data then SIPs have increased.Slow and steady wins the race. Why do industry people want lumsum money in such volatile market when even the fund managers are not confident.Introduction of transaction charges is sort of incentivising lumsum investment.I also do not understand why should a new investor pay an additional 50 rupees transaction charges.But as they say "the boss is always right" and so in our case The regulator is always right.

This 100 or 150 has only added confusion. Till now most banks had developed there charge structure and customers were paying the same. With this circular customers will now think that this is the maximum amount that is allowed to be charged while actually this is over and above the current charge structure. You have given this calculation for an application of Rs.10000 what about applications of higher amount such as 100000 will distributors be able to charge higher amount or not. I think we need to wait for more clarifications to come.

The move taken by SEBI is really a good initiative for new IFA 's but for the old one's would have been more appropriate if this move could have been linked to percentage terms .Second it will rather develop malpractise of multiple application which will otherwise increase the Cost of AMC .SEBI has one side abolished the entry load and again with this new initaitive asking investor to pay extra which will otherwise be seen as load only .I think still the fine prints on this is yet to come ..................... Let's wait till the time . Rgds , Arun Agrawal . ADJ Investment Raipur .

This is going to create more number of folios per person and it is going to cost the industry more by having more than one folio per person. If an IFA creates 3 folio for three investments how the same going to be cut? Rgds

First of all SEBI should treat all investors, whether direct or through distributor,at par.Because in this advanced era of connectivity majority business will slip off from ditributors.

SEBI's sole intention is investor protection...but why does SEBI feel protection means to reduce cost to the investor of paying advisors to such an extent that the industry & investors eventually die out.Protection in my opinion means to check malpractices, mis-selling, negligence in services, etc. How can protection mean not paying the right prices for services used ? SEBI should bring out processes to check wrong practices and not check due remuneration of advisors/consultants...distributors have to be upgraded to consultants officially..& it will come at a price..the only thing is it shouldn't be undue..thats all !

Rs. 100/- on an investment of Rs. 10,000/- is peanut in the sense that the prices of all inputs, say petrol/conveyance, xerox, back-office work and daily consumables of a distributor has gone up like any thing due to inflation. I consider that this would not help distributors much to bring in more business. The renewal fee of AMFI has itself have gone up manifold besides the fee of refresher course. How all this is manageable in this Rs. 100/-? Why RTA does not recognise the AMFI Card and insist on customer written requests to deliver statements of their own customers is also enhancing the cost of operations for distributors? Let us see what happens in future.

SEBI has completely let down and i feel this 100-150 stuff was avoidable since it will not even cover the actual travel expense. is NREGA influencing SEBI's largesse? what they have done am sure will start unethical practices and people will get the clients to fill in new forms every time and in different folios.retail in all respects.i do not know what to say.they could have changed the exit load to say 3 years and allow long term money to stay invested.well if they have not read the writing on the wall MFs will become history in india and maybe the best time for funds like VANGUARD to come.

If SEBI really wants the growth of this industry, it should give remuneration to its IFAs not in peanuts whereas percentage of the Amount.Even a small amount of Investment to come to this industry, it needs effort from the part of IFAs. That should be compensated. Even a Coolie here gets more than Rs.500/- a day. To educate and get invested with the help of KYC, Bank manager's Declaration of about 5 investors(5*100=500) a day take more time. Small distributors will still be away from it since they are unable to charge fees. IFAs will never be satisfied with such type of Incentive Structures

This lollipop of 100 Rs is not going to help the industry more at this moment,because marketing expenses are much higher at presnt rate of inflation and conveyance cost,even volatile markets have expelled investors which are tough to regain,The SEBI chief did not talk about online platform for IFAs which could have helped IFAs more then anything at present 100 Rs lollipop,can SEBI understand that same amount of efforts and time is needed for Rs 5000 application as in 10k application,what about 1000 Rs SIP,this all has resulted in more confusion for IFAs and investors both, This Rs 100 cap is not applicable on any financial product,it is unique idea of SEBI which looks like "ANYTHING IS BETTER THEN NOTHING",but it looks clearly that it is not very helpful idea for recovery of industry.

Sir ,my main motive to write this letter to you is that in Assam some corporate house is selling Mutual fund like a grocery shop selling biscuits. Sir, to my knowledge any individual who wants to sell mutual fund must be AMFI certified and nowadays NISM certified.Nodoubt GTFS has got its ARN No but the people that GTFS has engaged in selling mutual fund are not all ARN holder. The people that are selling mutual fund don’t even know what is mutual fund. Even banks today made it compulsory for its employee to obtain ARN No in order to sell mutual fund products in banks but how come these corporate houses engage people to sell mutual fund without any ARN No. SEBI and AMFI has also made it clear that anybody who wants to be a mutual fund advisor must possess ARN No.Why is SEBI not taking any steps against them Thanking you Shankar kumar

Sir, Even my computer hardware vendor when sends his so called Engineer, he is charging INR 250. The LG TV guy who is also unqualified charges INR 400. I believe this is an insult. Again how can you say that you cant charge for trxn lesser than 10K. Don't we have waste/invest our resources. I pray Almighty to give some understanding to the people who are rolling this types of proposals.

This is good platform to express business feelings, and get updated on each and every changes. now, SEBI moved to compensting the distributor with allowing expenses and gradually coming back to pay as earlier, this will strengthen the distributor strength.

Would really like to thank you to the forum for this platform. Let us try to UNITE by way of this forum. Thank You . 9422221149

Welcome for common account statement. A step taken in favor of the common investor. But what about IFA & small distributors... Instead of making all these changes why not reintroduce the entry load. I agree with Mamatha Rao, G Vana Krishna. The only industry is hammered is MF. At other end even the insurance is been sold under the banner of mutual fund... One more thing we all would like to request the authorities, is to change the process of KYD. Why a distributor is required to submit the KYD to each AMC separately, when the same can be accessed by each AMC directly form CAMS. Why are we trying to have food around the NECK. The worst part is that we all IFA's are not under one roof. Just see the CA institute, Advocates, Doctors, Engineers and so on....

Instead of excercising complex decesion, SEBI should declare that "we don't want retail distributors" The fact that SEBI does not know is, the common mentality of retail investors in India is, if distributor / agent is getting say 2% brokerage they asked for half of them which is happening in insurance sector , post office schemes and other investment and also with MF investment, though all the distributors may not compensate the investors. Most of the retail investors's view is why to pay 100 or 150 fees or any commission to the distributors? Also most of the investor prefer to invest through the AMC direct as they have to pay no charge for the same. The new generation investors are making online investment. Hence major retail investors don't need to invest through the distributors / agents. Despite, why SEBI is excercising new dimensions for distributors? "It is like a lollipop offering to small child" I request SEBI to take serious decision for Reiail Distributors

There seems to be no end for tinkering with the brokerage structure. A good thing is that there is a realization that the industry has suffered and the IFAs should be pampered with. It is very simple and the IFAs have to be paid for their work,irrespective of the investment amount, and the remuneration paid. Does anywhere any one works free? Pl. restore the old structure and leave the industry alone to prosper. In the name of helping the investor, lot of damage has already been done to both to the industry as well as to the IFAs. Another irritant is the KYD , Annual Declarations and brokerage on his own investment. Do these things are applied to any other catogory of Agents like Postal, Insurance etc. etc.?

new sales process regulations? These decisions a step backward

iam very much delighted in hearing incentiwise.this willimprove rural business.atleast weill get 2litres petrol formobilising rs.10000if this limit reduces 5000.itisvery useful.

we are back to old traditionals "old is gold". give 2.25 comission to all the ARN holders according to the bussiness pattern stright forward no compramise.

My only question is whether distributor can still take comission from their investor or not.

It is no new step that SEBI has taken.Even Govt.on National savings certi.pays 1% upfront and Incentive by state govt.This amount is paid on the investment immediately on receipt of amount.Ultimately it is given from investor's money only.My question is why not MF's pay commission from entry load from client.It becomes good for Govt.to pay from investor' pocket but it is sin if paid by MF's from clients entry load.It happens only in India.Nowhere else. Prafull Doshi.

its a good step but it must co relate amount of investments also .

instead of gaining IFA will loose bussiness due to again reintroduction of direct and indirect investor as many investor will flok to AMCs oregistrar office and new generation investor ,ech savvy investor will take the help of online platform to save transaction fees and IFA may loose a seizable chunk of bussiness and volume will grow over the period.Rather this fees should be common to all and fees collected from direct investor should be spent on investor education .

as an advisor if you target 10 clients daily then you can earn 1000 rs even your petrol cost will be higher than your earning

Overall outcome of SEBI meeting is ok.Introduction of Rs 100 for transaction of Rs 10000 will not help in large. It will be better if SEBI decided to introduce percentage base of transaction charges.Now it will be injustice to whom who bring more than Rs 10000 . Overall it is a first step to incentives distributor so that they encourage in mutual fund business. Regulation and compliance aspect is welcome aspect and it should be implemented strictly.

Instead of making all these changes why not reintroduce the entry load. Things will be simple and easy to manage. Any way you are going to charge the investor, then why discrimination among investors. It is very difficult, with the new changes, the advisors who have left the industry will ever reconsider again to re-enter the Mutual Fund industry.

SEBI has done nothing new for us.If we disclose the incentive. They would ask for it.Even in insurance sector,Agents get thirty five percent commission.There is no curtail.BUT in mf we are given so less payment.

With rising costs, And falling fees, The humble IFA is brought to his knees, When business is down, And inflation is high, When we want to smile But we have to sigh, SEBI makes us feel why did we enter this business .. Why ..Why.. Why? Just as we got used to charging,they want to change things again ..and not really for our benefit.Stop paying lip service and kill small iFAs..then let institutional distributers mis-sell

SEBI has done really nothing. It says "distributor would be allowed to charge...." what new thing SEBI has done. It was already the case. In fact, SEBI has restricted the advisory fee. Secondly, it says "in smaller towns..." This means, we in Mumbai can not charge the above fee. Thirdly, "No charge can be made for investments below Rs. 10,000". Here also SEBI has prohibited the fee. Arre has SEBI done anything good for IFA ? NO NO NO

something is better than nothing.

I THINK IT WILL BE BETTER FOR IFA.

Hi, The move is welcoming. But still required clarity on how to calculate & how to charge. The new rules may leads to multiple applications generation with same client. Other than flat fee, Variable fee is always better. Based on distributor services there should be a option to client to tick the fee structure. Any how the first step of SEBI in favour of business development brings a confidence in Distributor Face. Once again congrat to Mr Vijay for sharing our views in a industry related platform. Thank You. G Vana Krishna, VK Associates,Vijayawada @ +919848146056

Dear Sir, I am thankful to your forum for doing a yeoman service the distributor community by dissemanting consolidated information regarding mutual funds through this common medium. It serves as a encyclopedia for those who would like to refer some earlier newsreports etc. As regards the issue of incentives to distributors, my opionion is as under : a lot of distributors, including me who were otherwise having a good distribution business prior to the entry load ban moved on the greener pastures by taking up full time jobs which were equally/more remunerative. I am not sure such distributors who have move out will return for whatever incentive that the MF industry may offer. At best it may be a part time effort. It will be a case of once bitten twice shy