SEBI vide its circular no CIR/IMD/DF/21/2012 dated 13-Sep-2012 has, in partial modification to SEBI circular no. Cir/ IMD/ DF/13/ 2011 dated August 22, 2011, advised that distributors shall have also the option to either opt in or opt out of levying transaction charge based on type of the product.
The following are the product categories that currently exist.
| Sr. No. | Type of Product |
|---|---|
| 1 | Liquid/ Money Market Schemes |
| 2 | Gilt Schemes |
| 3 | Debt Schemes |
| 4 | Infrastructure Debt Fund Schemes |
| 5 | Equity Linked Saving Schemes (ELSS) |
| 6 | Other Equity Schemes |
| 7 | Balanced Schemes |
| 8 | Gold Exchange Traded Funds |
| 9 | Other Exchange Traded Funds |
| 10 | Fund of Funds investing Overseas |
| 11 | Fund of Funds - Domestic |
Accordingly, it is decided to open a special window up to November 17, 2012 for enabling distributors to exercise option at Product level. You may, therefore, exercise desired option for any of the above product type, by submitting the attached Option Letter latest by November 17, 2012, to the CAMS Point of Service (POS), the list of which is available on AMFI Website, www.amfiindia.com. The selected option will be effective from December 1, 2012.
Please also note the following :
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The existing Opt-In/ Opt-Out option will be made applicable to all the above types of product, unless the same is modified by submitting attached option letter latest by November 17, 2012.
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The default Option will be Opt-Out for all above types of product, where a distributor does not exercise the option.
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Data relating to "Opt-In/ Opt-Out" option chosen by distributors will be stored centrally and shared with all Fund Houses.
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The option exercised for a particular product category will be valid across all Mutual Funds.
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You can change your status twice in a year i.e. between March 1st to March 25th or September 1st to September 25th. The new status change will be applicable from the immediately succeeding month.
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No correction will be allowed in the "Option Letter". Any form with correction is liable to be rejected.
Please click here for Option Letter for levy of Transaction Charges at Product Type level.
