Overview

• An August 9 circular deleted the June 27, 2024 master circular and ended AMC-paid transaction charges on mutual fund investments.
• The previous framework had permitted AMCs to pay transaction fees on distributor-sourced subscriptions of at least Rs 10,000.
• SEBI conducted a public consultation in May 2023 followed by an industry review in June 2025 before finalizing the decision.
• The regulator affirmed that distributors remain entitled to remuneration but must shift to alternative, clearer compensation models.
• The overhaul is designed to simplify payment structures and strengthen transparency in the mutual fund sector.