Asset management companies (AMCs) may pass on a high share of the total expense ratio, or TER, impact to intermediaries such as distributors, brokers and registrar & transfer agents (RTAs).
The last round of TER cut saw AMCs pass on a major share (75-90%) of the impact largely to distributors. This time, however, given the inclusion of GST, trading cost and securities transaction tax (STT), the impact will have to be shared with brokers as well, said a report by Kotak Institutional Equities.
