Capital market regulator Sebi’s proposal to sharply reduce brokerage and transaction cost for mutual funds is emerging as the most consequential - and contentious - reform in its plan to tweak regulations in pursuit of ease of business and transparency.

The consultation paper released on October 28 has proposed that mutual funds will be allowed to charge a maximum of only 0.02 percent of equity trades and 0.01 percent of derivatives trades outside the Total Expense Ratio (TER). Any excess brokerage must be within the TER, a move that is expected to put pressure on asset managers and hit institutional broker revenue. Read More

Deepak Shenoy, founder of Capitalmind AMC posted on social media that the move would prevent investors from being “double-charged” for research. “Research should c

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