AMCs rally as Sebi softens expense cuts; HDFC AMC, Nippon Life jump over 5%

The lower-than-planned cuts and the removal of the overhang of impending changes to the fee structure that had persisted over the past two years led to a rally in stocks of AMCs and allied sectors

Shares of asset management companies (AMCs) rallied up to 7 per cent on Thursday after the Securities and Exchange Board of India (Sebi) announced milder cuts to the mutual fund (MF) fee and brokerage expense caps than initially proposed.

 

As compared to the consultation paper released in October, the revised expense structure approved by the regulator on Wednesday was seen less punitive on two fronts — brokerage cost caps and maximum expense ratio chargeable by equity schemes with assets of over ₹2,000 crore.

 

The new expense ratio slabs are largely in line with the existing ones and only differ from