₹2 per financial transaction, which they see as unviable. In addition they allege that AMCs are dragging their feet when it comes to signing agreements to operationalize category 1 EOP.
The Sebi circular was to come into effect from 1 December but many of the category 1 EOP applicants have not commenced operations due to lack of agreements being signed with AMCs. MF platforms are also worried about privacy rules in the model agreements drafted by Amfi that will make cross-selling more difficult.
However, platforms that were running as RIAs but only providing execution services to customers see EOP as the light at the end of the tunnel. These platforms will come out of the ambit of the onerous RIA regulations and start charging customers or AMCs for their services.
From a customer point of view, the jury is still out—business models will evolve and one way or the other, it is they who will end up paying. This is unsurprising—a free lunch can last only so long.Milestone Alert!
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