Sebi proposes major overhaul of mutual fund fee norms to enhance investor transparency

The Securities and Exchange Board of India (Sebi) introduced a proposal to rationalize mutual fund fee structures aimed at lowering investor costs and improving disclosure clarity. The regulator suggested revising total expense ratios and capping performance-linked charges to curb distributor bias. The initiative follows months of consultation with fund houses and aims to align with global best practices. Analysts expect the move to increase competition among asset managers while benefiting small investors. Public feedback has been invited before final implementation in early 2026.