The Securities and Exchange Board of India (SEBI) released draft rules to limit mutual fund equity brokerage at 0.02% and derivatives at 0.01%, seeking to curb hidden costs and improve pricing transparency. Analysts note this move could compress distributor margins but enhance returns for investors through lower transaction expenses. The regulator’s broader review of fund expenses also targets improved governance and disclosure norms. Brokerages may see near-term pressure as funds adjust operational models under the new regime.