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India’s AMCs tumble up to 10% as SEBI unveils sweeping fee-plan
Indian AMC stocks fell up to 10% after SEBI’s proposed fee-plan overhauls mutual fund charges and could squeeze profitability.
Shares of leading Indian asset-management companies plunged as much as 10% after the Securities and Exchange Board of India released a consultation paper proposing major cuts in mutual-fund fee structures and exit loads. The draft suggests reducing long-term fund charges and removing certain loads altogether to enhance investor transparency. Analysts warn the overhaul could compress margins and force AMCs to re-engineer distribution and product models. The move is seen as part of a broader clamp-down on costs in India’s asset-management industry amid growing regulatory scrutiny.