SEBI Greenlights Mutual Funds to Pay Distributors Transaction Fees – A Win for Middlemen?
India's market regulator just handed mutual fund distributors a payday—because who doesn't love extra fees?
SEBI's latest move lets asset managers compensate distributors for transaction charges directly. Because clearly, the 2% annual trail commission wasn't enough incentive to push products.
Active verbs, passive ethics? The circular quietly dropped on Friday avoids mentioning whether investors get clearer disclosures—or just higher costs baked into NAVs.
One more layer in the fee onion. As always, the financial industry finds a way to monetize oxygen.