SEBI's new mutual fund rules: What's changing for you?
SEBI just rolled out a major update to mutual fund rules, kicking in from April 1, 2026.
The big news: costs are getting clearer. There's now a Base Expense Ratio (BER) that separates out fund management costs from statutory and regulatory levies such as GST, stamp duty, SEBI fees, and exchange charges, so you'll know exactly what you're paying for.
What does this mean for investors?
The Total Expense Ratio (TER) will now include BER, brokerage, and all actual levies—making it easier to see the real cost of your investment.
Plus, limits on fees are dropping: index funds/ETFs go from 1% to 0.9%, close-ended equity funds from 1.25% to 1%.
Brokerage caps are also down—cash trades drop to 0.06% and derivatives to 0.02%.
Any other updates?
Yes! Getting your securities just got faster; they'll hit your demat account in about a month instead of five.
IPOs will have shorter draft summaries, and bond issues can offer special perks for seniors, women, and retail investors too.