Archive · 18 Dec 2025
SEBI Cuts MF Expense Ratio
The Securities and Exchange Board of India (SEBI) made big changes to mutual funds and other financial rules.
They lowered the fees you pay for mutual funds by separating different costs clearly.
Brokerage fees were also cut, which means less money spent on trading.
The rules for companies issuing bonds were made simpler, and now they can offer special deals to certain investors like senior citizens.
SEBI also made it easier for companies like banks and insurers to do business.
They didn't change some rules about research and brokerage because it might have hurt small investors.
Overall, these changes aim to make investing easier and cheaper for everyone.
SEBI made significant changes to mutual fund expense ratios, separating statutory, regulatory levies, brokerage fees, and base expense ratio (BER).
Brokerage fees were reduced to benefit investors, with cash market fees cut from 12 paise to 6 paise and derivative market fees from 5 paise to 2 paise.
The regulatory framework was simplified, reducing operational and compliance requirements by 44%, from 162 to 88 pages.
Amendments to ICDR regulations ensure non-promoters' shares pledged before IPO are recorded as non-transferable during the lock-in period.
Debt issuers are now permitted to offer incentives to certain investor categories, aiming to deepen the bond market.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Made sweeping changes in mutual fund expense ratio, stock broker regulations, and debt issuer incentives
- When
- Wednesday (specific date not mentioned)
- Where
- India
- Why
- To benefit investors, simplify regulatory framework, and deepen the bond market
- Regulatory Changes
- Sweeping changes in mutual fund expense ratio, stock broker regulations, and debt issuer incentives
- Expense Ratio Demarcation
- Clear demarcation between statutory, regulatory levies, brokerage fees, and base expense ratio (BER)
- Brokerage Fee Reduction
- Cash market: 12 paise to 6 paise; Derivative market: 5 paise to 2 paise
- Regulatory Framework Simplification
- 44% reduction in operational and compliance requirements, from 162 to 88 pages
- ICDR Amendments
- Non-promoters' shares pledged before IPO to be recorded as non-transferable during lock-in period
- Bond Market Deepening
- Debt issuers permitted to offer incentives to certain investor categories
- Credit Rating Agencies
- Required to segregate and label Sebi-regulated and non-regulated instruments
- HVDLE Threshold Relaxation
- Easier business conditions for shadow banks, ARCs, insurers, and REITs
Sources
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