Amfi Welcomes Sebi's Balanced New Rules for Mutual Funds

The Association of Mutual Funds of India (Amfi) praised Sebi's new regulations for mutual funds, calling them balanced and favorable for both investors and fund houses. The rules, effective from April 1, introduce changes to expense ratios and brokerage limits, promoting certainty and growth in the mutual fund industry.

The Association of Mutual Funds of India (Amfi) heralded Sebi's newly announced mutual fund regulations as a forward-thinking set of rules designed to balance industry needs and investor interests. Sundeep Sikka, executive director of Nippon India Mutual Fund and Amfi chair, emphasized the certainty the rules provide.

The new regulations, detailed on Wednesday, addressed investor concerns by adjusting fees and removing a 7-year provision, allowing fund houses to apply a 0.05 per cent additional exit load. This departure from the earlier draft rules is seen as less 'radical' and more accommodating after industry feedback.

With the introduction of the base expense ratio (BER) and rationalized brokerage limits, the regulations redefine cost structures. Sebi chairman Tuhin Kanta Pandey clarified that these changes are set for implementation on April 1, spotlighting their role in fostering industry growth.