Sebi revises base expense ratio of mutual funds across categories

Capital markets regulator Sebi has revised the base expense ratio (BER) of mutual funds across categories in a board meeting, according to ET Now. The regulator’s board approved exclusion of all statutory levies from the base expense ratio such as securities transaction tax (STT), GST and stamp duty.

Sebi in October already released a consultation paper suggesting lowering of mutual fund expense ratio to make them simpler and more transparent.

Under the new rules, Sebi has lowered BER of index funds and ETFs from 1% from 0.9% earlier.

Further, the regulator’s board has also approved a proposal simplified IPO documents so that retail investors are better informed about the important information about the public offer. Sebi chief Tuhin Kanta Pandey said companies will now need to include abridged prospectus, that has relevant information, when filing the draft offer document.

More to come…