SEBI Slashes Mutual Fund Fees: Boost for Investors, Market Transparency

• SEBI has reduced mutual fund expense ratios and brokerage costs for investors.
• Brokerage in the cash market cut from 12 bps to 6 bps, and in derivatives from 5 bps to 2 bps.
• The extra 5 bps charge over and above the exit load has been scrapped.
• These changes, effective April 1, 2026, aim to make investing cheaper and enhance transparency.
• While positive for investors, FII outflows remain a significant concern for Indian equity markets.

Why It Matters: SEBI's fee cuts make mutual funds cheaper, boosting investor interest, but FII outflows persist as a market worry.