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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Fund Distribution and Channel Management Practices

Under the SEBI-mandated commission disclosure norms, a distributor must give an investor which of the following?

The distributor must disclose all commissions, whether trail or any other mode, received from the mutual fund schemes relating to the investor. This is a standing requirement and does not depend on the investor asking in writing or on any minimum commission threshold.

  1. AOnly the scheme name, with no commission details
  2. BDisclosure of all commissions (trail or any other mode) received from various mutual funds, relating to the investor's schemesCorrect
  3. CCommission details only if the investor asks in writing every year
  4. DDisclosure only for commissions above Rs 1 lakh

Explanation

Distributors must disclose to investors all commissions, trail or otherwise, received from mutual fund schemes the investor holds or is recommended. The disclosure is not conditional on a request or a monetary threshold.

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