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Sebi may clamp down on broker commissions for PMS, AIFs, says report

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The proposal follows complaints that asset managers and distributors are aggressively pushing PMS and AIFs to investors after incentives for selling mutual fund schemes were cut, the report said, adding that the capital market regulator has asked feedback from the PMS industry and will come up with a plan shortly.

Sebi may clamp down on broker commissions for PMS, AIFs, says report
In an effort to clampdown on misselling and bringing in more transparency to the system, the Securities and Exchange Board of India (Sebi) is planning to tighten rules for broker commissions on fees charged by portfolio management services (PMS) and alternative investment funds (AIFs), The Economic Times reported.
The proposal follows complaints that asset managers and distributors are aggressively pushing PMS and AIFs to investors after incentives for selling mutual fund schemes were cut, the report said, adding that the capital market regulator has asked feedback from the PMS industry and will come up with a plan shortly.
“The alternative industry has grown significantly and Sebi is convinced that there is a need to streamline the way such products are sold,” people in the know told ET, adding that asset managers collect money from investors and manage them on their behalf when it comes to PMS and AIFs.