A new SEBI proposal aims to eliminate the additional five bps allowance currently permitted under mutual fund expense structures. The framework will undergo public consultation post Nov 1. Regulatory intention centres around investor cost protection, simplification, transparency, and standardization of expense disclosures to reduce product selection friction. MF industry participants said operational clarity will be the key variable driving alignment timelines. This transition will likely result in more uniform category-level pricing band interpretation and improved direct comparability across competing schemes which has been a recurring pain point for retail and RIA selection logic.