The Securities and Exchange Board of India (SEBI) on May 18, 2023, issued a Consultation Paper on the Review of the Total Expense Ratio charged by Asset Management Companies (AMCs) to unitholders of schemes of Mutual Funds to facilitate greater transparency and accrual of benefits of economies of scale to investors.
The following has been stated namely: -
• This was issued to further streamline the provisions relating to TER
• Certain proposals have been made namely: -
1. Transparency in Total Expenses charges to investors
2. Accrual of the benefit of Economies of Scale to investors
3. Encourage new participants/AMCs
4. Facilitate financial inclusion
5. Removing dual charges, if any, to investors
6. Addressing the likelihood of proliferation of schemes due to scheme level TER
7. Addressing the issue of splitting of applications, the churning of investor’s portfolios, etc., for higher distribution commission.
The Comments may be sent by email to
1. Ms. Manaswini Mahapatra - [email protected],
2. Mr. Peter Mardi - [email protected]
3. Ms. Laxmi Rampurawala - [email protected]
latest by June 01, 2023. While sending the email, kindly mention the subject as “Consultation Paper on Review of Total Expense Ratio charged by Asset Management Companies (AMCs) to unitholders of schemes of Mutual Funds to facilitate greater transparency and accrual of benefits of economies of scale to investors” The comments should be sent by email in MS Excel file in the prescribed format.
