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In MFs' trading expense revamp, AMCs, brokerages see Rs 3.5k-cr blow

Markets regulator has proposed to bring trading and brokerage fee within TER limit

mutual funds, MFs

Sebi sees several problems with the current set-up with respect to transaction cost and brokerage payments

Abhishek Kumar Mumbai

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The Securities and Exchange Board of India’s (Sebi’s) proposal to overhaul the expenses charged by mutual funds (MFs) is likely to deliver a combined blow of up to Rs 3,500 crore to asset management companies (AMCs) and broking firms. Rs 3,500 is the estimated amount paid by MFs to brokerages in the 2022-23 financial year and was charged to investors over and above the total expense ratio (TER) of MF schemes, according to Sebi data.

In a consultation paper issued on Thursday, the markets regulator has proposed to bring the brokerages within the TER, a move that will force MFs

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First Published: May 19 2023 | 6:26 PM IST

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