Distributor Communication - Transaction charges at Product Type level
SEBI vide its circular no CIR/IMD/DF/21/2012 dated13-Sep-2012 has, in partial modification to SEBI circular no.Cir/ IMD/ DF/13/ 2011 dated August 22, 2011, advised that distributors shall have also the option to either opt inor opt out of levying transaction charge based on type of the product.
The following are the product categoriesthat currently exist.
||Category of product
||Liquid/ Money Market Schemes
||Infrastructure Debt Fund Schemes
||Equity Linked Saving Schemes (ELSS)
||Other Equity Schemes
||Gold Exchange Traded Funds
||Other Exchange Traded Funds
||Fund of Funds investing Overseas
||Fund of Funds – Domestic
Accordingly, it is decided to open a special window up to November 17, 2012 for enabling distributors to exerciseoption at Product level. You may, therefore, exercise desired option for any of the above product type, bysubmitting the attached Option Letter latest by November 17, 2012, to the CAMS – Point of Service (POS),the list of which is available on AMFI Website, www.amfiindia.com. Please allow us a few days to register yourrequest. The selected option will be effective from December 1, 2012.
The ARN holders should note the following:
- The existing Opt-In/ Opt-Out option will be made applicable to all the above types of product, unless thesame is modified by submitting attached option letter latest by November 17, 2012.
- Where a distributor does not exercise the option, the default Option will be Opt–out for all above categories of product.
- Data relating to “opt in/ opt out” option chosen by distributors will be stored centrally and shared with all Fund Houses.
- The option exercised for a particular product category will be valid across all Mutual Funds.
- You can change your status twice in a year i.e. between March 1st to March 25th or September1st toSeptember 25th. The new status change will be applicable from the immediatelysucceeding month.
- No correction will be allowed in the “Option Letter”. Any form with correction is liable to be rejected.
Please find the Option Letter for levy of Transaction Charges at Product Type level which needs to be filled by the ARN Holder Click Here