SEBI’s fee-separation proposal raises concerns over research ecosystem viability

SEBI is evaluating a proposal to unbundle broker fees, a move that could change how market participants pay for execution and research services. Mutual fund houses and brokerage firms have cautioned that separating charges may weaken India’s equity research ecosystem by reducing funding for analyst coverage. Industry stakeholders are reviewing potential implications as the regulator studies global models and considers safeguards to protect research quality.