The Securities and Exchange Board of India (SEBI) on Tuesday (October 28) issued a Consultation Paper proposing a comprehensive review of the SEBI (Mutual Funds) Regulations, 1996 , focusing on brokerage costs and the Total Expense Ratio (TER). The paper introduces a series of changes aimed at rationalising costs, improving transparency, and ensuring investor protection across mutual fund schemes.

Under the new framework, the transitory additional expense of 5 basis points (bps) on the entire AUM, permitted since 2018, has been removed. To balance this, SEBI has increased the first two TER slabs for open-ended active schemes by 5 bps, maintaining operational viability for Asset Management Companies (AMCs) while curbing investor costs.

All statutory levies, including STT, CTT, GST, and

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