The Securities and Exchange Board of India (SEBI) has announced new rules to make mutual funds cheaper and more transparent for investors. These rules will start from 1 April 2026.
One major change is that SEBI has cut the maximum fees mutual funds can pay for buying and selling shares. For regular stock trades, fees will drop from 0.12% to 0.06%, and for derivatives trades, from 0.05% to 0.02%. This will reduce the trading costs that affect investors’ returns.
SEBI is also changing how mutual fund costs are shown. Funds will now display a Base Expense Ratio, which includes main costs like fund management and running the fund. Other charges like taxes and stamp duties will be listed separately. This makes it easier for investors to see what they are paying for.
Another important change is that SEBI has removed the extra 0.05% fee that some funds charged when investors sold their units early. This will further lower hidden costs.
SEBI says these changes are meant to protect investors and make fees clearer, not just reduce them. Experts say the effect on costs will differ between funds, but overall, many investors are likely to benefit.
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