New Delhi, Nov. 1 -- Toplines of mutual fund distributors could come under pressure as asset management companies (AMCs) are likely to cut distributor commissions if the Securities and Exchange Board of India's (Sebi) proposed rules on tweaking the fee structures come into effect.

In a consultation paper on 28 October, Sebi laid out a key change which could impact the revenues of AMCs and may lead to lower revenues for mutual fund distributors as a second-order effect. The move also comes at a time when investors have started investing directly in mutual funds, and the share of distributors, although high, is decreasing.

The proportion of direct plans in total systematic investment plan (SIP) assets has increased over the last five year...