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Thanks for the eye opener Mr. Sathish

The issue raised is important. Distributors should get paid as early as possible. Moreover the statements of brokerage should be more simplified and similar format should be used by all amcs.

Simple solution ....pay fortnightly like that of UTI MF.

Hi Sathish, Sensible point raised, well drafted, pls accept my compliments for this. Coming to the issue raised: - This point should be taken up as TOP urgent priority by AMCs. - Till the time we reach 3rd working day practice; (a) Pay 8% interest for the delay beyond 3 days but upto 15th of the month. (b) Beyond 15th of the month, a penal 16% interest should be added to the brokerage. It may be sound drastic, but it is not. A faster turn-around will lead to greater satisfaction on IFA front, thus boosting business. Hope we see the move towards this sooner .... than later.

i do agree that amc s are delaying release of brokerage deliberately in the presence today available mean and methods .it should take some steps to pay value at proper time.

What you are saying is absolutely right.In this tech savvy industry, you cannot say it is not possible / difficult to pay by 3rd working day.

I agree with you sir, But allowing and converting retail folio to direct folio is the major problem. Direct plan is the Prime issue according to me. As I have faced a major problem with this

Dear Friends , Again , I re iterate that we shall focuss on getting on to total trail , so the the income will increase, in first place. This act will almost double the existing trail income - a 100 % raise in income. Then , this date of payment , is relatively smaller issue.As it is relatively smaller issue , though , its very much valid - the difference is hardly : 0.2% of the base amount ( assuming the loss is @ 8% that one gets on the liquid funds).We shall focuss on averting the loss thats is amounting to 100% and not this 0.2%. Switch to total trail model as soon as possible , as a top priority.

I am also agree with you. Now my point is there are so many IFA Federation or association, I hope they must point out this to the AMC.

agree.very important point to be noted.matter to be taken to IFA federation/assocation.thks

I have heard that they are giving preference to ND & delay our payments.Now a days technology is fast so they can easily give

The point raised is quite valid.It is the demand of time that all AMC &/ or Their RTO should amend the system in mutual benefit to all concened.If Distributors get in time they can work better .HOPE Authorities will awake soon.

It is a valid observation.It would be better if,IFA associations/federations take up this cause and exert serious pressure on AMCs to release the brokerage pymt early, as mentioned by Sathish Khumaar.

some delay may be due to business submitted on the last date/s for cheque clearing. we may suggest that brokerage upto 26th day may be paid/credited on the 1st,2nd date of the next month.

This is very valid point raised by Mr. P. Sathish. with excellence customized softwares available, there should not be any difficulty for AMC to realise brokerage by 3rd working day of month. This issue should be raised by all of us as well as AMFI with all AMCs. Many times some AMCs pay brokerage after 15th which is unacceptable by any standards.

I have even experienced RTA like Karvy doing wrong recovery of money and after complaining, they took 5-6 months to rectify the mistake and later released after lot of follow-up. If they are following this practice with even 5000 Distributors, its huge money they are enjoying huge float. I have appealed the AMCs, to take this up seriously and dont allow RTAs to take undue advantage.

Yes. I fully agree with you. In a computer age at the end of month they can easily calculate the brokerage & trail & can be paid in 3 days after month closing. If cut of time of investment is possible, redemption in T+3 or T+1 is possible then why brokerage in closing+3 is not possible? AMCs & RTA are enjoying float.