Sebi initiates detailed study of fees, expenses charged by mutual funds

Capital markets regulator Sebi on Friday said it has initiated a detailed study of fees and expenses charged by mutual funds.

The study would endeavour to provide data as input for policy formulations, the Securities and Exchange Board of India (Sebi) said in a statement.

The policies would seek to balance the need for facilitating financial inclusion, encouraging new participants, leveraging economies of scale, encouraging adoption of technology, discouraging cross subsidisation across schemes, closing arbitrage opportunities if any, and curbing malpractices if any.

The regulator has commenced "detailed study of existing provisions applicable for fees and expenses in mutual fund schemes vis-a-vis market practices".

Based on the study, if required, appropriate policy measures would be undertaken after following the established process of stakeholder as well as public consultation.

The move is part of an ongoing exercise to continuously align regulatory provisions to reflect the market dynamics and their impact on investor interest.

At present, there are 43 players in the mutual fund space, which together manages asset to the tune of over Rs 40 lakh crore.