Strict norms to weed out erring MF agents soon

Having already hiked registration fees ten-fold, industry body AMFI is in the process of bringing out major changes in registration and renewal norms for MF distributors, whose numbers currently stand over one lakh. Sources said Association of Mutual Funds in India (AMFI) will soon come out with new norms and could ask distributors to comply with them from next month.

The measures would include more stringent scrutiny of distributors at the time of registration as well as renewal through Know-Your-Distributor (KYD) procedure.

The new procedure could include giving all distributors a biometric card after stringent verification process that would look into the past record of the distributors to minimise risk of mis-selling and other potential fraudulent activities, sources said.