In a move to make the mutual fund (MF) industry more transparent, the Securities and Exchange Board of India (Sebi) today asked asset management companies (AMCs) to stop paying commissions to intermediaries, including banks and other distributors, who did not keep proper documents of their clients.
The documents relate to know-your-client (KYC) and power of attorney (PoA) norms for the industry.
“All documents related to investors, including KYC, PoA, in respect of transactions or requests made through some mutual fund distributors are not available with AMCs and registrar and transfer agents. The same are to be maintained by the distributors,” it said.
The regulator has also asked fund houses to set up a separate customer service, mechanism for queries and grievances of unit holders.
