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India's markets regulator has proposed changes to mutual fund fee structures as it sought a more transparent break-up of costs that investors are charged, according a consultation paper published on its website on Tuesday.

Investors are charged a fee called expense ratio to pay for the mutual fund's operating expenses, which is deducted from net asset value (NAV) of the fund.

The proposed changes to expense ratio is part of the overall review of mutual fund regulations to remove redundant rules and usher in transparency, the regulator said.

The Securities and Exchange Board of India (SEBI) has proposed that these fees should exclude all costs including brokerage and taxes, and the break-up must be disclosed upfront.

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