Sebi set to overhaul MF, disclosure, broker rules

Board to discuss new rules, update outdated ones at 17 December meeting

- Apoorva Ajith

The board of India's stock market regulator will take up the most sweeping revision of regulations in decades spanning mutual funds, stock brokers and its own officials later this month, two people aware of the meeting's agenda said.

The board will discuss bringing in new rules, updating outdated rules, and removing overlapping ones.

In October, the Securities and Exchange Board of India (Sebi) proposed to cap brokerage and transaction costs that funds charge beyond annual fees collected under their total expense ratio (TER). Sebi also proposed to scrap the additional five basis points charged over the exit load and a more comprehensive disclosure of the TER, which is used to cover management and operating costs.

“Mutual fund regulations and stock broker norms will definitely be part of the Sebi agenda,” one of the two people cited above said on the condition of anonymity. The regulator's board will meet on 17 December.

A Sebi spokesperson did not respond to Mint’s queries.