Sebi allows entry fee on mutual funds

In a move to increase the penetration of mutual funds and which would add to the cost of investors, capital market regulator Securities and Exchange Board of India (Sebi) on Monday allowed MF distributors to levy Rs 100 as transaction charge per subscription from existing investors and Rs 150 from new ones.

In a move to increase the penetration of mutual funds and which would add to the cost of investors, capital market regulator Securities and Exchange Board of India (Sebi) on Monday allowed MF distributors to levy Rs 100 as transaction charge per subscription from existing investors and Rs 150 from new ones.

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“It has been decided that a transaction charge per subscription of Rs 10,000 and above be allowed to be paid to the distributors of the mutual fund products from the date of this circular,” Sebi said.

However, there will be no transaction charges on direct investments.