The Securities and Exchange Board of India (Sebi), has proposed a major change to how mutual fund fees are charged. The plan aims to make the system simpler, more transparent, and cheaper for investors.

The proposals include revising the expense ratio structure, removing extra charges, tightening brokerage limits, and excluding government taxes from the total expense ratio cap.

In its consultation paper released on Tuesday, Sebi said the goal is to ensure that investors benefit more directly from the growing size of India’s Rs 75.6 lakh crore mutual fund industry. The regulator has invited public comments on the proposal until November 17.

WHAT SEBI PLANS TO CHANGE

At present, mutual fund houses are allowed to charge investors a range of fees and expenses under the Total Expense Ratio

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