(LiveMint)
The Securities and Exchange Board of India (Sebi), at its board meeting today, announced several measures to reduce investor cost. Sebi has decided to slash mutual fund expenses, reduce time period for listing of shares, approved amendments for interoperability among clearing corporations, and prepared draft framework for participation of Eligible Foreign Entities (EFEs) in the commodity derivatives market.
“The board took note of the benefits of the proposal with respect to sharing of economies of scale, lowering the cost for mutual fund investors, bringing in transparency in appropriation of expenses, and reducing misselling and churning,” Sebi said in a statement after the board meeting. The maximum total expense ratio (TER) for equity-oriented mutual fund schemes is at 1.25% and for other than equity oriented schemes at a maximum of 1%. An additional expense of 30 basis points (bps) is allowed for penetration in B-30 (beyond 30) cities.
