Shares of HDFC Asset Management Company dropped 7% on Tuesday after SEBI’s consultation paper suggested new limits on management fees, brokerage payments, and exit loads. Analysts at Motilal Oswal and Nuvama estimate these revisions could compress sector-wide profits by 30–33% by FY27. Nippon AMC and other listed asset managers also declined as investors reassessed earnings outlooks. Market participants said the move underscores SEBI’s broader transparency push, though it introduces near-term profitability headwinds for large AMCs managing high-margin equity funds.