This SEBI suggestion causes Motilal Oswal shares to drop by around 8%, the biggest in six months.

In reaction to the recommendations given by market regulator Securities & Exchange Board of India (SEBI), shares of Motilal Oswal Financial Services Ltd. fell by around 8% on Wednesday, October 29. In draft regulations posted on Tuesday night, market regulator SEBI suggested reducing the maximum on brokerage fees paid by mutual funds. According to the draft regulations, brokerage costs for transactions in the futures market would be reduced from five basis points to one basis point, and for transactions in the cash market, they would be reduced from twelve basis points to two basis points. Pratik Gupta of Kotak Institutional Equities stated in an interview with CNBC-TV18 that he has modest expectations and lets free market forces take control in such situations.