- SEBI may instruct mutual fund companies to cut fees to 5 basis points from an existing 20 basis points.
- SEBI had permitted mutual fund companies to levy a charge of 20 basis points when a mandatory exit load of 1% was removed.
- Earlier, there was a flat 1% exit load whenever money was redeemed from a mutual fund.
- Right now, SEBI is taking up this issue with Mutual Fund Advisory Committee.
- If accepted, the rule will come into effect from 1st April 2018.