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Fund Distribution Agreement Template for India

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Key Requirements PROMPT example:

Fund Distribution Agreement

"I need a Fund Distribution Agreement for an online-only mutual fund distribution platform operating across India, with specific provisions for digital onboarding and robo-advisory services, to be effective from March 1, 2025."

Document background
The Fund Distribution Agreement is a critical document used in the Indian financial services sector to formalize the relationship between Asset Management Companies and various categories of fund distributors. This agreement is essential when an AMC wishes to expand its distribution network through third-party distributors, ensuring compliance with SEBI regulations, AMFI guidelines, and other applicable Indian laws. The document covers crucial aspects such as distribution rights, commission structures, compliance requirements, operational procedures, and risk management protocols. It's particularly important in the context of India's growing mutual fund industry, where regulatory oversight is increasing and standardized distribution practices are essential for investor protection.
Suggested Sections

1. Parties: Identification of the Fund House/AMC and the Distributor with complete details

2. Background: Context of the agreement, including the Fund House's authority to operate and Distributor's qualifications

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Terms of appointment and scope of distribution services

5. Rights and Obligations of the Distributor: Detailed responsibilities including marketing, client servicing, and compliance requirements

6. Rights and Obligations of the Fund House: Fund House's commitments, support services, and obligations

7. Compliance Requirements: Regulatory compliance, including SEBI regulations, AMFI guidelines, and KYC requirements

8. Commission Structure: Commission rates, calculation methods, and payment terms

9. Representations and Warranties: Standard and specific representations from both parties

10. Term and Termination: Duration of agreement and termination provisions

11. Confidentiality: Protection of confidential information and trade secrets

12. Indemnification: Mutual indemnification provisions and liability limitations

13. Governing Law and Jurisdiction: Applicable law and dispute resolution mechanisms

14. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Digital Distribution Protocols: Specific provisions for online/digital distribution channels

2. Sub-distributor Arrangements: Terms for managing sub-distributor relationships if permitted

3. International Distribution: Additional requirements for cross-border distribution if applicable

4. Training and Certification: Specific requirements for distributor training and certification

5. Performance Metrics: Specific performance targets and evaluation criteria

6. Marketing Guidelines: Detailed marketing and branding requirements

7. Data Protection: Enhanced data protection and privacy provisions beyond standard confidentiality

Suggested Schedules

1. Schedule A - Product List: List of funds/products approved for distribution

2. Schedule B - Commission Structure: Detailed commission rates, clawback provisions, and special incentives

3. Schedule C - Operational Procedures: Detailed procedures for order processing, reporting, and reconciliation

4. Schedule D - Compliance Checklist: Specific compliance requirements and documentation

5. Schedule E - Territory Definition: Geographical areas covered under the distribution rights

6. Appendix 1 - KYC Requirements: Detailed KYC and customer documentation requirements

7. Appendix 2 - Reporting Formats: Standard formats for periodic reporting and reconciliation

8. Appendix 3 - Marketing Materials Guidelines: Guidelines and approval process for marketing materials

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions































Clauses



































Relevant Industries

Financial Services

Asset Management

Banking

Wealth Management

FinTech

Investment Services

Professional Services

Regulatory Compliance

Relevant Teams

Legal

Compliance

Distribution

Sales

Operations

Risk Management

Business Development

Product Management

Finance

Regulatory Affairs

Relevant Roles

Chief Executive Officer

Compliance Officer

Legal Counsel

Distribution Head

Sales Director

Relationship Manager

Business Development Manager

Risk Manager

Operations Manager

Regulatory Affairs Manager

Channel Partner Manager

Product Manager

Chief Financial Officer

Investment Advisor

Wealth Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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