The Securities and Exchange Board of India (Sebi) has asked asset management companies (AMCs) not to compel investors to get no-objection certificates (NoCs) from their existing distributors for shifting their investments.
This is a reiteration of the Association of Mutual Funds of India (Amfi) advice to AMCs to allow investors to change their distributor on the basis of a letter from them.
However, “it appears that this mandate is not being followed by the mutual fund industry,” it said.“Some AMCs are insisting on the investor procuring an NoC from the existing distributor for this switch over, despite the guideline from Amfi,” said Sebi.
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