SEBI REVAMPS MF FEES, PUTS ETHICS FRAMEWORK ON HOLD

The Securities and Exchange Board of India (Sebi) on Wednesday approved a sweeping overhaul of mutual fund fee regulations to enhance transparency and rationalise costs for investors, while deferring a decision on a proposed framework to manage conflicts of interest among senior officials.

- FPJ News Service

The board cleared changes to the expense ratio framework, mandating a clearer breakup and fuller disclosure of all costs charged by mutual fund schemes.

India's mutual fund industry currently manages assets exceeding Rs 81 trillion, while the alternative investment fund segment stands at about Rs 6.1 trillion, underscoring the scale and significance of the reforms.

A key decision is the creation of a "base expense ratio", which will exclude statutory levies such as securities transaction tax, goods and services tax, commodity transaction tax and stamp duty from the expense ratio limits.