The shares of leading asset management companies (AMCs) plunged sharply on Wednesday, October 29, after the Securities and Exchange Board of India (SEBI) floated a sweeping set of proposals to rationalise mutual fund expenses. The market regulator’s move aimed at tightening the definition of the Total Expense Ratio (TER) and revising the limits on brokerage and other charges triggered a wave of selling across the asset management pack, as investors reassessed earnings outlooks for the sector.

HDFC Asset Management Company , Aditya Birla Sun Life AMC , UTI AMC , Nippon Life India AMC , and Shriram AMC all fell as much as 10% during the session. Other names like CAMS , Nuvama and Motilal Oswal also saw over 4% losses each.

Key objective of the SEBI proposal

SEBI’s consulta

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