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

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