The Securities and Exchange Board of India (SEBI) has proposed a complete revamp of its mutual funds regulations aimed at simplifying the nearly three-decade-old framework, removing redundant provisions and improving investor protection.

The mutual fund rulebook has become “voluminous and complex” after years of piecemeal amendments, and so “SEBI has undertaken an exercise to comprehensively review the MF Regulations” to make them easier to understand and implement, it said in a draft paper on Tuesday.

The revised framework proposes sweeping changes across governance, compliance, disclosure and cost structures. This includes the removal of the additional 5 basis points (bps) expense that asset management companies (AMCs) were allowed to charge on schemes with exit loads.

To offset the i

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