Business Standard

Sebi considers bringing in new expense structure for mutual funds

Plans to link expense ratio to AMCs' total AUM in an asset class

Sebi, Securities and Exchange Board of India
Premium

Sebi is also exploring a new incentive structure, which will reward distributors bringing new investors to the industry, irrespective of the location of the investor

Abhishek KumarKhushboo Tiwari Mumbai

Listen to This Article

The Securities and Exchange Board of India (Sebi) is discussing with mutual funds (MFs) a proposal on introducing new total expense ratio (TER) slabs linked to the total equity and debt assets by replacing the current ones that are linked to assets of an individual scheme.

Senior MF executives confirmed that Sebi had held discussions on this matter with AMCs.

Such a change is expected to lead to a lower TER cap for bigger asset management companies (AMCs). TER is the expenses charged by AMCs for managing a scheme.

If the new model is implemented, fund houses will have to

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

First Published: Mar 30 2023 | 7:28 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