Asset management companies, which were already licking wounds after changes in taxation for debt mutual funds, are now staring at a Rs 1,400 crore shock from markets regulator Sebi which has proposed a cap on fees.
During FY22, AMCs reported pre-tax profit of Rs 10,900 crore after absorbing Rs 30,806 crore expenses (TER). Under the proposed slab, the total expenses chargeable would come down to Rs 29,404 crore. This would lead to under-recovery of Rs 1,402 crore.
