SEBI's Expense Ratio Revision Boosts AMC Shares Up To 8.5%

• Shares of HDFC AMC, Canara Robeco, and other AMCs surged up to 8.5% after SEBI revised mutual fund expense ratios.
• SEBI reduced brokerage limits for cash market transactions to 6 bps (from 12 bps) and derivatives to 2 bps (from 5 bps).
• The regulator removed the additional 5-bps expense allowance on schemes with exit loads.
• Maximum expense ratios for various schemes were reduced, and Total Expense Ratio (TER) was replaced by Base Expense Ratio (BER), excluding external levies.
• Analysts like Citi and JM Financial view the impact as neutral to slightly positive for AMCs, with a much lower revenue hit than initially feared.

Why It Matters: SEBI's revised expense ratio framework is seen as a relief for fund houses, leading to a surge in AMC shares.