Mutual funds push back as SEBI plans to cap brokerage fees
On November 24, 2025, CEOs from 60 mutual fund companies sat down with SEBI to discuss a big change: slashing brokerage fees on trades.
SEBI wants to drop cash trade fees from 12 basis points (bps) to just 2 bps, and derivatives from 5 bps to 1 bps.
The goal? Make costs clearer for investors by capping these fees and preventing excessive brokerage and transaction costs from being charged in addition to the Total Expense Ratio (TER).
Why should you care?
If you invest—or plan to—this could mean lower costs and more transparency in mutual funds.
But fund managers worry that such sharp cuts might hurt research quality or squeeze their profits, possibly making it harder for them to deliver strong returns.
SEBI is still weighing its final decision after getting more data, trying to balance investor protection with keeping the industry healthy.