Disclosures
In compliance with SEBI Circular no. SEBI/ IMD/CIR/No.4/168230/09 dated June 30,2009, we have been disclosing to our clients all the brokerage, sales incentives, and
commissions (in the form of trail commission or any other mode) payable to us for different competing schemes of various mutual funds from amongst which the schemes are recommended to you. Capital Markets regulator SEBI has now mandated
that with effect from 1st October 2016 CAS issued shall also provide the amount of actual commission paid by AMCs/Mutual Funds (MFs) to distributors (in absolute terms) during the half-year period against the concerned investor’s total
investments in each MF scheme. The term ‘commission’ here refers to all direct monetary payments and other payments made in the form of gifts / rewards, trips, event sponsorships etc. by AMCs/MFs to distributors. We would however continue
to disclose the commission structure, in the present format as this information would serve a different purpose from CAS. We strongly believe that our relationship with you should be based on honesty, integrity, transparency and mutual
trust. We also believe that higher levels of transparency are the stepping-stones for higher levels of ethical practices and would help you ultimately. We feel vindicated when you have appreciated us for such deeds in the past and
we would strive to keep your trust on us intact and sacred in the future as well. As you are already aware, we have migrated to ‘all trail’ brokerage model with all the mutual fund AMCs we deal with. This arrangement means that we
will receive no upfront brokerage. Trailer commission is linked to the performance of your investments and hence our gross income is directly connected to your portfolio performance. Also, the commission we receive is before adjusting
for GST, the rate of which currently stands at 18%. It means for every rupee of commission that we earn, we pay to Government of India 18 paisa as GST. So, our net of GST commission is 82% of what is listed in these documents. GST
is applicable on all types of commission we receive. Here is the link to download the brokerage structure applicable to Prokens Opesmetrics from Oct 2020 onwards.
http://prokens.com/Commission/Brokerage_Disclosure_Oct2020.zip
