SEBI notified the SEBI (Mutual Funds) Regulations, 2026, replacing the framework in place since 1996. Effective 1 April 2026, the new rules introduce a restructured expense framework. The Total Expense Ratio (TER) is now split into a Base Expense Ratio (BER) for pure management fees, with brokerage, statutory levies (GST, STT, stamp duty) shown separately. Brokerage caps reduced from 12 bps to 6 bps in cash market, from 5 bps to 2 bps in derivatives. The additional 5 bps allowance for schemes with exit loads has been removed. AMCs can optionally offer performance-linked fees. Trustees are expected to take a more active governance role.
SEBI Notifies New Mutual Fund Regulations 2026 — Biggest Overhaul in 30 Years
16 January 2026
INVESTMENTS | MUTUAL FUNDS | SEBI
💰 Impact on your wallet: Your mutual fund costs will come down slightly and you’ll see exactly what you’re paying the fund house versus what goes to taxes and brokerage. While individual reductions seem small (0.05–0.15%), over a 20-year SIP, even a 0.10% reduction in costs can mean 2–3% more in your final corpus due to compounding. Check your fund statements after April 2026 for the new BER disclosures.