{"id":4107,"date":"2025-08-10T13:53:32","date_gmt":"2025-08-10T13:53:32","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/10\/sebi-scraps-transaction-charges-to-mf-distributors-what-it-means-for-you-savings-and-investments-news\/"},"modified":"2025-08-10T13:53:32","modified_gmt":"2025-08-10T13:53:32","slug":"sebi-scraps-transaction-charges-to-mf-distributors-what-it-means-for-you-savings-and-investments-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/10\/sebi-scraps-transaction-charges-to-mf-distributors-what-it-means-for-you-savings-and-investments-news\/","title":{"rendered":"SEBI Scraps Transaction Charges To MF Distributors: What It Means For You | Savings and Investments News"},"content":{"rendered":"


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Last Updated:<\/span>

SEBI has removed transaction charges paid by AMCs to mutual fund distributors, effective immediately.<\/h2>\n
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SEBI scraps transaction charges and commission paid by AMCs to MF distributors. <\/p>\n<\/figure>\n

The Securities and Exchange Board of India (SEBI) has announced the removal of transaction charges or commissions paid by Asset Management Companies (AMCs) to mutual fund distributors. SEBI had taken the decision after a public consultation and industry-wide feedback.<\/p>\n

The market regulator clarified that the changes will come into effect immediately.<\/p>\n

\u201c\u2026SEBI Master Circular for Mutual Funds dated June 27, 2024 (Master Circular) allows AMCs to pay to the distributor transaction charges, subject to a minimum subscription amount of INR 10,000\/<\/p>\n

\u2013 brought in by such distributors,” SEBI circular mentioned.<\/p>\n

\u201cBased on the feedback received from the industry and considering that distributors as an agents of AMCs are entitled to be remunerated by the AMCs, the charges or commission, as prescribed under the paragraph 10.4.1.b and paragraph 10.5 of Master Circular, shall be done away with.”<\/p>\n

An Asset Management Company is a SEBI-registered entity that pools funds from individual and institutional investors to invest in various asset classes, such as\u00a0equities,\u00a0debt\u00a0and other securities.<\/p>\n

How Does It Impact You?<\/h3>\n

The decision is expected to impact how AMCs structure their distributor incentives, with a possible shift towards more transparent and performance-linked commission models.<\/p>\n

For individual investors, the decision might lead to marginal cost savings, especially for those investing through distributors.<\/p>\n

For distributors, however, the change may require adjustments in their revenue models, potentially leading to greater emphasis on advisory services and long-term client relationships.<\/p>\n

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Varun Yadav<\/a><\/p>\n

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Stay updated with all the latest business news, including\u00a0market trends<\/a>,\u00a0stock updates<\/a>,\u00a0tax<\/a>, IPO,\u00a0banking finance<\/a>, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates\u2014only on News18. Also\u00a0Download the\u00a0News18 App<\/a>\u00a0to stay updated!<\/span><\/div>\n

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Last Updated:August 10, 2025, 10:23 IST SEBI has removed transaction charges paid by AMCs to mutual fund distributors, effective immediately. SEBI scraps transaction charges and commission paid by AMCs to MF distributors. The Securities and Exchange Board of India (SEBI) has announced the removal of transaction charges or commissions paid by Asset Management Companies (AMCs)…<\/p>\n","protected":false},"author":1,"featured_media":4108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-4107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/4107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=4107"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/4107\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/4108"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=4107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=4107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=4107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}