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Today I attended a training session conducted by an AMC, where one of the participants asked the same question. The trainer replied that " it is not a show stopper, it is a speed breaker ". What speed are they trying to arrest,where only 4% of the population are MF covered, & bank FDs are 8 times more than that of the MF AUM ? Is any noodle manufacturer required to publish a statutory warning that " eating noodles may be risky for your nutritional intake & intestinal health". OR Does a Whitening cream co. required to publish a rejoinder that" using this cream may subject your skin to adverse effects by prolonged use or during old age ". The logic behind the actions of the regulators are difficult to comprehend.

Mr. Saurabh has left out a few points, which taken together would make the MF IFAs job the least coveted one. 1. Service Tax of 14%-means an IFA earning 20,000/- after a month long hassle of facing unsavoury client questions, gets ony 17200/- in hand.(2800/- is deducted by the govt.) 2. In return the govt./ regulators give him an uncertain future - by way of reducing / stopping the brokerage payout ( 2009 Aug & 2015 Apr.) 3. The regulators & the govt expect that the IFAs would sell MF products & service clients FREE OF COST. Whenever there is a bullish trend in the market, the commissions are cut. On the other hand online platforms,direct schemes are being propagated to increase MF penetration. CAN WE CALL THIS INTOLERANCE ?

SEBI or AMFI are identities who frame the regulations. When KYC form was framed the details like marital status, place of birth, income Indian / foreign countries should have been included. Some of these like taxation status which change with time and any other similar points beyond the thought of an advisor could have embedded in the application forms. The effect of tax free black money,hawala money were known to the law makers. Similarly the advisors should have the diligence in their work, should attend training classes. Adopt good asset allocation method, read financial magazines etc. In the recent SEBI has abolished the selling of ELSS under dividend reinvestment optio Did it call for years to realize the effect of reinvesting the dividends in ELSS? Even after 20 years of participation of private entities we do not have a format for SOA / terminology in the industry. Every AMC finds its own way even to ask for FATCA information. All of us have to think on these matters.

the regulators do not know the ground realities.they are fighting a war as armed chair GENERALS.WILL THEY APPLY THEIR MIND WHILE PROMULGATING REGULATIONS THEN AND THERE.

yes i am agree

This way small IFA will find it difficult to run his work due to regulations but E-commerce web sites and Big players will sell mutual funds. Its bigger lobby effect, rather conspiracy to remove small players from field. It seems that all action in this country happening in mutual funds only. KYC, FATCA, SERVICE TAX and so on......

Everyday SEBI issue a new rules and create a painful job for us. Sebi ? direct ? 400% proffit ? Distributor

jab sara len den bank dwara hi hota hai aur bank ka khata bina kyc ke chalta nahi hai to alag se kyc ki jarurat kyon.

All such regulations imposed everyday are not only making the MF distributor business tougher but also turning the inclination of IFAs towards the other business they are involved in. with such a low commission rates, service tax deduction, so maaaaaaaany regulations and top of all returns on investments due to volatile market (mostly beerish) will impact the MF industry and results will be apparent soon. Now its time for AMCs to come forward and join hands with distributors to boost their moral.

frequent changes in kyc like regulation are necessary why?........... let the ill-informed direct mode investors understand how IFA works ......

I agree with Mr. Bajaj. It is indeed high time that these regulations were once and for all decided and then implemented once. also It would be nice if there were standardized forms across all AMCs. This too would be convenient for both investors, advisors and registrars. It is important to realize that sometimes in the garb of regulation, the investment product comes across as complicated and inconvenient and this is not good for the industry.

Shouldnt the question be why are regulators not getting the confidence and have to bring more and more regulations in MF industry ? Isnt that a sign that our self regulation is failing and every now and then loopholes are being identified and in order to safeguard the customer regulator has to bring more and more regulations.

Let amc staff do the paper work. Anyway they all work for banking channel