The Securities and Exchange Board of India released a consultation paper proposing deep cuts to equity exit loads and brokerage commissions, triggering concern over AMC profitability. Top fund houses such as HDFC, ICICI Prudential, and Kotak are expected to face reduced income streams as the new transparency norms curb embedded distributor incentives. Industry executives warned that smaller fund houses might struggle to absorb compliance costs. Analysts projected profit declines between 20% and 35% if the rules are implemented without transitional adjustments.