Mumbai, Mar 28 (PTI) Markets regulator Sebi today decided to reduce the additional expenses charged by mutual funds by 15 basis points to aimed at increasing penetration of such products among investors. Also Read - RCap invites Nippon Life to acquire its stake in asset management JV
“Based on data and the recommendations of Mutual Fund Advisory Committee (MFAC), the board approved the proposal to reduce the maximum additional expense permitted to be charged to a mutual fund scheme from 20 basis points to 5 basis points,” Sebi noted. A basis point is one-hundredth of a percentage point. Also Read - Were under pressure to say won't admit Kashmiri students from next session: Dehradun colleges
The move will help reduce cost for investing in MFs, Sebi Chairman Ajay Tyagi told reporters here after the board meeting. Also Read - Toshiba Group changes name of UEM India to Toshiba Water Solutions
In 2012, the Securities and Exchange Board of India (Sebi) had permitted MFs to charge 20 basis points of assets under management of the scheme in lieu of exit loads, or the sum mobilised from investors when they offload holdings.
Sebi has approved amendment to the regulatory framework to enable disclosures related to MFs in investor-friendly electronic form.
The board has approved certain proposals like dispense with the requirement of publication of daily net asset value (NAV), sale or repurchase prices in newspapers and of sending physical copies of scheme annual reports or abridged summary to all the investors whose email addresses are not available and statement of scheme portfolios to unit holders on half-yearly basis.
Instead, these details will be placed on the websites of Amfi and MF houses.
Further, MFs will publish advertisement informing about posting of the annual report and statement of scheme portfolios on the websites and will provide the relevant information to investors upon request.
This is published unedited from the PTI feed.