Asset managers have overcharged mutual fund investors by as much as Rs1,500 crore in the last five years by unfairly charging fees, according to an internal study by the market regulator.
A Securities and Exchange Board of India (Sebi) advisory committee has recommended that asset managers credit the excess charges collected by them back into the mutual fund schemes. The regulator’s board, which is meeting on Wednesday, is likely to consider this issue, said two people aware of the matter.
Here’s how this overcharging happened:
