AMFI Guidelines for change of mutual fund distributor
Summary
SEBI addresses the issue of investors facing hardship when attempting to switch mutual fund distributors or deal directly. The regulator notes that some Asset Management Companies are incorrectly requiring a No Objection Certificate from existing distributors despite prior AMFI guidelines. SEBI mandates that all mutual funds must comply with investor instructions to change distributors without imposing such unnecessary obstacles.
Text
You are, therefore, advised to ensure compliance with the instruction of the investor informing his desire to change his distributor and / or go direct, without compelling that investor to obtain an NoC from the existing distributor.
All mutual funds shall comply with the above requirements in letter and spirit.
Source: SecMarx — AMFI Guidelines for change of mutual fund distributor. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.