How-to commission distributor

How to handle MF distributor commission (trail + upfront)

From WebNotes, a public knowledge base. Last updated . Reading time ~3 min.

MF distributor commission is the primary revenue stream for ARN holders. Trail-only structure (post-2019); upfront commissions banned by SEBI.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any AMC. No affiliate commission is earned.

Tax-disclaimer. Consult CA for personalised tax planning.

Step-by-step procedure

See the procedure infobox above for the six steps.

See also

External references

References

  1. SEBI (Mutual Funds) Regulations, 1996.
  2. Income Tax Act, 1961, Section 194H.
  3. SEBI Upfront Commission Ban Circular, 2018-2019.
  4. AMFI Best Practice Guidelines on distributor commissions.

Reviewed and published by

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed
Conflicts of interest
WebNotes is independent. No relationship with any broker, registrar or bank named in this article.