What are the new SEBI guidelines all about?

Relevant extract of the SEBI circular released on June 30, 2009 (SEBI/IMD/CIR No.
4/168230/09) is as follows:

'In order to empower the investors in deciding the commission paid to distributors in accordance with the level of service received, to bring about more transparency in payment of commissions and to incentivise long term investment, it has been decided that:

There shall be no entry load for all mutual fund schemes

The scheme application forms shall carry a suitable disclosure to the effect that the
 

upfront commission to distributors will be paid by the investor directly to the distributor, based on his assessment of various factors including the service rendered by the distributor

Of the exit load or CDSC charged to the investor, a maximum of 1% of the

 

redemption proceeds shall be maintained in a separate account which can be used by the AMC to pay commissions to the distributor and to take care of other marketing and selling expenses. Any balance shall be credited to the scheme immediately
The distributors should disclose all the commissions (in the form of trail commission
 

 or any other mode) payable to them for the different competing schemes of various mutual funds from amongst which the scheme is being recommended to the investor
This circular shall be applicable for :
Investments in mutual fund schemes (including additional purchases and
  switch-in to a scheme from other schemes) with effect from August 1, 2009
Redemptions from mutual fund schemes (including switch-out from other
  schemes) with effect from August 1, 2009
New mutual fund schemes launched on and after August 1, 2009; and
Systematic Investment Plans (SIPs) registered on or after August 1, 2009'