No entry fee on mutual funds from Aug 1 - SEBI

MUMBAI (Reuters) - Indian mutual funds can not levy any entry charge for investments from August 1, the Securities and Exchange Board of India said in a note late on Tuesday.

Funds could, however, levy an exit fee of up to 1 percent of the redemption amount to pay commissions to distributors and for marketing and selling expenses, it added.

The regulator said investors would pay any upfront charge to distributors directly based on his service. It also directed distributors to disclose commissions payable to them by fund houses.