HDFC AMC, Canara Robeco, other AMC shares rise up to 8.5% after SEBI revises expense ratios

HDFC AMC, Canara Robeco, other AMC shares rise up to 8.5% after SEBI revises expense ratios

Shares of asset management companies rose up to 8.5% on December 18 a day after the board of Securities and Exchange Board of India (SEBI) approved changes to mutual fund fee structure to encourage disclosure of transparent break-up of costs. The SEBI board revised the limits on brokerage paid by asset management companies to brokers and distributors, which will now also exclude statutory levies. This has been done to prevent investors from being charged twice for research-related costs. The brokerage limit for cash market transactions has been reduced to 6 basis points from the existing 12 bps, which also included statutory levies. For derivatives transactions, the brokerage cap has been reduced to 2 bps from 5 bps earlier, the regulator decided at its board meet on December 17. All this is for information. This is not a buy/sell recommendation. thank you, Technofunda24