In the interest of the investors, The Securities and Exchange Board of India (SEBI) has mandated that no entry load shall be charged for 'DIRECT' applications received by the Asset Management Company (AMC) i.e. applications received through Internet, submitted to AMC or collection centre / Investor Service Centre that are not routed through any distributor/agent/broker. This circular shall be applicable to:
- Investments in existing schemes with effect from January 4, 2008 and in new schemes launched on and after the said date.
- Additional purchases done directly by the investor under the same folio and switch-in to a scheme from other schemes if such a transaction is done directly by the investor.The waiver of entry load for 'DIRECT' applications will be effective from January 4, 2008.
New / additional subscriptions, existing Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) not routed through a distributor / broker / agent will not attract entry load.
Any transaction routed directly, i.e. without a broker, would not attract any entry load.
No entry load will be applicable for the installments falling on or after 04th January 2008 for SIP / STP routed directly, i.e. without a broker. Units will be allotted for the entire amount of redemption.
Yes. A written request has to be given by the investor(s), depending on the mode of holding, for change of broker to 'DIRECT'. For all the future installments the entry load will be waived off. However, the request should be submitted at least 10 days before the next SIP / STP date.
There is no change in the exit load provisions.
The investments would continue to be routed through the recorded broker unless specifically instructed by the investor by mentioning 'DIRECT' on the application form / transaction slip and signed by the Unitholder(s), depending on the mode of holding. If the broker code is preprinted then the same has to be struck off and countersigned by the investor(s), depending on the mode of holding. In addition the word 'DIRECT' should be written on the transaction slip.
Yes.
The change / alteration has to be countersigned by the investor(s), depending on the mode of holding. Only then the investment will be treated as 'DIRECT' and no entry load will be charged.
Only if the investor selects the broker code as 'DIRECT' while transacting online, there will be no entry load for the purchase / switch transaction.
You are required to submit the change of broker code request at least 10 days prior to your next SIP / STP installment date.
A change of broker code request would take approximately one week to get updated.
No. However, we would intimate your old broker about the change of broker code.
Yes, as long as it is authorized by the Unitholder(s), depending on the mode of holding. However, the procedure would be different for the Channel Distributors. In such case, the documents have to be routed through the Channel Distributor.
No. The said guideline is effective January 4, 2008.
Yes. A written request has to be submitted for change of broker code signed by the Unitholder(s), depending on the mode of holding. However, the procedure would be different for the Channel Distributors. In such case, the documents have to be routed through the Channel Distributor.
Yes, the broker would be eligible for the trail commission from the date the broker code is added in the scheme.
No.
No Entry Load is applicable.