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SEBI will soon issue a consultation paper on the new TER structure. In fact, the market regulator has constituted a working group which will submit its view on the new TER structure of mutual funds in India, said Ananta Barua, Whole Time Member SEBI. He was addressing the delegates at CII Mutual Fund Summit held today in Mumbai.
Barua further said that there is a possibility of introducing a performance-led TER i.e. schemes which perform better can charge more than the underperforming schemes. He said, " One of the suggestions which has come is that if any scheme or fund is performing well above the benchmark, it (fee) can be linked to their performance. When the committee finds merit then we can take it through a consultation paper."
At a panel discussion, Manoj Kumar, Executive Director, SEBI also said, “We will soon come out with a very elaborative consultation paper on the cost structure."
