Sebi extends time to submit public comments on proposed tweaks to MFs’ expense ratio

Indian regulator, Securities and Exchange Board of India (SEBI), has extended consultation on proposals aimed at proposing sweeping changes to the expense ratio of mutual funds in the country. The regulator is aiming to prevent distributors from pushing new fund offerings for higher commissions. The regulator has proposed that the total expense ratio (TER) charged by asset management companies should be levied at the AMC level and not at the scheme level currently, while also introducing performance fees for funds. SEBI has suggested the maximum TER for an equity scheme is 2.55% at the AMC level.