Indian asset-managers tumble as SEBI proposes sweeping fee-cap changes

Shares of India’s asset-management firms plunged today—by up to 8%—after the Securities and Exchange Board of India proposed deep cuts in brokerage fee caps: from 12 bps to 2 bps in cash markets and from 5 bps to 1 bp in derivatives. Analysts forecast that major firms could see a 30–33% drop in profits before tax by 2027. The move is part of regulatory efforts to boost transparency and reduce investor costs, but it also raises significant questions about business models and margins in India’s wealth-management industry.