Sebi Revises Mutual Fund Regulations Introducing Base Expense Ratio from April 2026

The Securities and Exchange Board of India (Sebi) has notified a comprehensive overhaul of mutual fund regulations, effective April 1, 2026. Key changes include introducing a Base Expense Ratio (BER) that separates fund management fees from statutory charges like GST and STT, lowering expense ratio caps across most fund categories, and allowing performance-linked expense charging under specified conditions. The regulations also tighten governance norms and clarify expense responsibilities for asset management companies and trustees to enhance transparency and reduce investor costs.