Asset management companies fear 'transaction fee burden' on margins

Online mutual fund platforms are set to get a go-ahead to charge transaction fee

With the capital markets regulator set to allow online mutual fund (MF) platforms to charge a transaction fee, asset management companies (AMCs) are worried that the onus of paying the charge will ultimately fall upon them.

On Tuesday, the Securities and Exchange Board of India (Sebi) gave its nod to the execution-only platform (EOP) framework, specially designed for investment platforms that sell direct plans of MFs.

Until now, these platforms were either working through an investment advisory (IA) or stockbroking licence.

While the intricacies of the regulations are yet to come out, the regulator has said that such platforms will