SEBI's MF Overhaul: New Rules Threaten Research Quality, Small Funds - Sandeep Parekh

• SEBI has unveiled a major overhaul of mutual fund regulations, the first in nearly three decades, sparking industry debate.
• Sandeep Parekh of Finsec Law Advisors calls the new rules a "mixed bag," warning of unintended consequences for research quality and smaller fund houses.
• The unbundling of brokerage and research costs, while improving transparency, could weaken the research ecosystem and adversely impact funds and brokers, especially smaller ones.
• Parekh fears the changes will reduce the quality of information available to funds for investment decisions, as specialized research becomes unaffordable for many.
• The revised TER structure, though fairer, may favor large funds in Tier-1 cities and disincentivize distribution in Tier-3 towns, harming smaller funds.

Why It Matters: SEBI's new MF rules are a "mixed bag," potentially hurting research quality and smaller funds despite transparency goals.