Business Standard

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
Premium

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

Abhishek Kumar Mumbai

Listen to This Article

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

Don't miss the most important news and views of the day. Get them on our Telegram channel

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

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com