AMFI extends free registration schemes till September

NEW DELHI: Association of Mutual Funds in India ( AMFI)has extended the free registration schemes for a new cadre of distributors which includes senior citizens and retired teachers by three months till September.

The earlier deadline was June 30, according to information available with the AMFI.

AMFI had made the registration fees zero from February 1 this year.

The initiative is aimed at enlarging distribution network and attracting new cadre of distributors or Independent Financial Advisors (IFAs) for selling mutual fund products.

According to AMFI, the distributors registering under the category of individuals, including senior citizens and new cadre of distributors, need not pay the registration fees.

The association said that it will "waive registration fees for all the distributors registering for the first time in the categories of individuals (including senior citizen) and new cadre of distributors during the period from February 1, 2013 to September, 30 2013."

The waiver is mainly targeted at the 'new cadre of distributors' that was introduced by market regulator Securities and Exchange Board of India ( Sebi) last year.

The regulator has allowed a new cadre of distributors including postal agents, retired government, teachers and bank officers to sell units of simple and performing schemes to increase the strength of mutual fund distribution network.

In November last year, AMFI had slashed registration fees to Rs 3,000 for three years per distributor from Rs 5,000.

Mutual fund industry's average assets under management (AUM) touched an all-time high of Rs 8.68 lakh crore in May on the back of strong inflows into money market and income funds.