SEBI's new mutual fund rules could mean lower costs
SEBI, India's market regulator, is planning a big update to how mutual fund fees work—hoping to make things cheaper and clearer for investors.
The headline move? Scrapping an extra 5 basis points (bps) fee that fund houses have been charging since 2012.
If you invest in mutual funds, this could mean lower costs ahead.
Fund houses get some protection
To balance things out for fund houses, SEBI suggests a small 5 bps hike in the lowest expense ratio slabs.
Plus, taxes like GST and STT would no longer be bundled into expense caps—so if those taxes go up in the future, investors would pay the difference directly.
Proposed changes to brokerage fees
SEBI also wants to cut brokerage fees on stock and derivatives trades—from 12 bps to 2 bps (cash), and 5 bps to 1 bps (derivatives).
The idea is to stop you from getting double-charged for trading and research.
If you've got thoughts, SEBI's open for feedback until November 17, 2025.