Sebi's Brokerage Overhaul: A New Era of Transparency in Investing Costs

The Securities and Exchange Board of India (Sebi) is set to transform investment dynamics with its proposal to rationalize brokerage limits, aimed at driving transparency and cost-efficiency for investors. Industry experts say this change ensures investors pay only for value received and not double for similar services.

Sebi's recently released consultation paper suggests removing taxes and brokerage from the total expense ratio (TER), offering investors a clearer view of investment costs. The plan also proposes significant reductions in brokerage caps, seeking to decrease investor expenses and improve returns.

Besides cutting costs, Sebi's initiatives aim to streamline regulatory frameworks by simplifying fund sponsor eligibility norms and digitizing investor communications. Public feedback on the proposals is invited until November 17, highlighting Sebi's commitment to inclusive policy formulation.