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In a letter sent to SEBI, AMFI has urged that the market regulator should consider keeping additional costs and taxes like GST, stamp duty and brokerage expense outside the purview of TER, said two senior MF officials familiar with the development.
A senior official requesting anonymity said that since taxation is outside the purview of SEBI, it could have huge impact on fund houses. This could also affect ability of fund houses to invest in mutual fund business and increase MF penetration, he said.
Earlier in May, SEBI has proposed that AMCs should include all additional expenses like GST, brokerage and so on under the TER.
Also, SEBI has proposed to do away with additional expenses of 0.30% and 0.05% of the total daily NAV which were charged in lieu of b30 incentives and exit loads, respectively. However, the regulator has proposed to introduce a new fixed fee for B30 MFDs.
