SEBI slashes broker fees for mutual funds by half

SEBI cut brokerage costs to 6 basis points from the current 12 basis points

- Apoorva Ajith

The capital markets regulator has slashed the brokerage fees that mutual funds can charge and approved new rules to simplify public-lisiting disclosures, among other measures, to protect retail investors and improve compliance.

The Securities and Exchange Board of India (SEBI) cut brokerage costs that mutual funds can charge investors to 6 basis points (bps) from the current 12 bpsin the cash market, according to the decisions announced after the regulator's board meeting on Wednesday. For the derivatives segment, brokerage limits have been reduced to 2 bps from the current 5 bps.

‘The SEBI board also scrapped the additional 5 bps charged over the exit load or the fee levied when investors redeem their investments.

The revised provisions are effective April 1, 2026.