SEBI directs Mutual Funds to not levy exit load on switching from Regular to Direct plans

SEBI has recently issued a directive for AMCs regarding exit load applicability on switches from Regular to Direct plans. As per the guideline, no exit load should be charged when an investor switches from Regular plan to Direct plan. Accordingly many fund houses have issued notices to inform the investors.

So far, following AMCs have removed exit load on switch transactions from their Regular to Direct plans:

• 360 One
• Bandhan
• Bank of India
• Baroda BNP Paribas
• HDFC
• HSBC
• ICICI
• LIC
• Mirae
• Motilal (Motilal Oswal Active Momentum Fund)
• NAVI (Navi Liquid Fund)
• PGIM
• Quant
• Tata
• Trust