New Delhi, May 4 -- A few distribution platforms are allowing unqualified sub-brokers to sell specialized investment funds (SIFs) - plans that require a minimum investment of Rs.10 lakh and yield healthy commissions - in violation of norms as the segment faces a shortage of approved sellers, according to three people aware of the development.

SIFs are more flexible than mutual funds when it comes to strategies such as long-short equity, derivatives and active asset allocation helping in delivering superior returns attracting investors. But, given their relatively higher risk, Securities and Exchange Board of India (Sebi) rules mandate distributors clear an exam conducted by National Institute of Securities Markets (NISM). Barely half the...