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SEBI reviews brokerage-fee cap for mutual funds amid industry pushback
SEBI is weighing raising its draft cap on brokerage fees payable by mutual funds after industry concerns about research access and competitive disadvantage arose.
India’s markets regulator Securities and Exchange Board of India (SEBI) is considering revising its proposed cap on brokerage fees paid by mutual funds for cash-market trades. The original draft sought to reduce the fee cap from 12 basis points to 2 basis points, but asset managers and brokers argued this could impede research access and favour foreign funds. SEBI’s internal assessment shows foreign investors typically pay lower fees.
A decision is expected by mid-November after industry consultations, balancing cost reduction for retail investors with research-support access.