Proposed fee structure for the AIF Industry to level playing field

Direct plans, trail model for distribution of commission in Sebi's line of sight

The Securities and Exchange Board of India (Sebi) has trained its sights on the mis-selling in the alternative investment fund (AIF) industry. The capital markets regulator has proposed mandating service providers to offer direct plans and the trail model for the distribution of commission.

Sebi has already done away with the upfront commission and introduced direct plans for mutual funds (MFs). The upfront commission has been banned for the portfolio management services industry as well.

The latest proposals for the AIF industry will level the playing field and remove potential arbitrage opportunities distributors enjoyed by pushing one segment over the