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Sebi extends feedback window on MF expense ratio consultation paper
Capital markets regulator Sebi on Thursday extended the timeline till June 8 for submitting public comments on the proposed sweeping changes to mutual fund's expense ratio.
The proposal is aimed at curbing distributor practices of unnecessary switching of schemes and pushing new fund offerings for higher commissions.
Sebi had placed a consultation paper on the review of the total expense ratio (TER) charged by AMCS to unitholders of fund schemes on May 18 and sought comments till June 1 on the proposal.
Now, it has been decided to extend the timeline for submission of comments to June 8, the regulator said.
TER accounts for the fees and expenses charged by asset management companies (AMCs).
The Securities and Exchange Board of India (Sebi) in its consultation paper proposed the introduction of performance fees for funds. It proposed two approaches in this regard but also suggested testing the models under the Regulatory Sandbox.
In addition, the regulator suggested that TER shoul