SEBI is likely to put restriction on fund houses charging 20 bps in lieu of exit loads. The regulator may reduce the charge from 20 bps to 5 bps. SEBI will discuss this at its board meeting on Wednesday, said four sources familiar with the development.
These sources told Cafemutual that the SEBI mutual fund advisory committee (MFAC) headed by Arundhati Bhattacharya had discussed this at their first meeting earlier this month.
SEBI had allowed fund houses to charge an additional TER to the extent of 20 bps with effect from October 2012 in lieu of exit loads. Also, the market regulator had mandated that the entire exit load should be credited back to the schemes.
In February, SEBI had barred close-ended funds from charging an additional 20 bps TER in lieu of exit loads.
The market regulator is also likely to launch a ‘go green’ campaign under which SEBI will ask fund houses to reduce the use of paper. “The market regulator may ask us to use paper only if it is necessary. SEBI want us to go digital where it is possible,” the CEO of a large fund house said.
