Archive · 23 Nov 2025
Sebi, MF Heads to Discuss Contentious Brokerage Fee Cap
The head of India's capital markets regulator, Sebi, is meeting with top mutual fund executives to discuss a controversial proposal to cap the fees that fund houses pay brokers for executing trades.
The proposal, part of Sebi's move to overhaul mutual fund costs, has faced pushback from sell-side brokers who provide research services to MFs.
The meeting will also cover other market development and compliance issues.
Sebi to discuss contentious brokerage fee cap with MF heads on Monday
Cap on broker commissions proposed to be relaxed from 2 bps to 6-7 bps
Meeting to discuss market development, compliance, and other issues
Sebi's TER overhaul aims to enhance investor transparency and returns
Sell-side brokers push back against proposed fee cap reduction
- Who
- Securities and Exchange Board of India (Sebi) Chair Tuhin Kanta Pandey and heads of asset management companies (AMCs)
- What
- Discussing the contentious proposal to cap brokerage fees and other market issues
- When
- Monday
- Where
- Sebi headquarters
- Why
- To enhance investor transparency and returns, and discuss market development and compliance
Sebi and Mutual Funds
Sell-side Brokers
Brokerage fee cap
Sebi and Mutual Funds
Sebi proposes to cap brokerage fees at 2 bps to enhance investor returns
Sell-side Brokers
Sell-side brokers push back against the proposed cap, arguing it squeezes their revenue and could impose additional costs on mutual funds
- Current brokerage cap proposal
- 2 basis points (bps)
- Proposed relaxation
- 6-7 bps
- Current maximum brokerage
- 12 bps
- Sebi's TER overhaul goal
- Enhance investor transparency and returns
- Meeting frequency
- Once a year