SEBI cuts brokers’ turnover fee by 25 per cent
To bring down the overall cost of transaction in the stock market, markets regulator Sebi on Saturday reduced its turnover fees by 25% to Rs 15 per Rs 1 crore worth of turnover from Rs 20 earlier. The Sebi decision could lead to lower trading costs for large institutional investors like insurance companies, foreign investors and mutual funds, and also high networth investors. Dealers said Sebi's move will complement the government's ease of doing business initiatives since the reduction in fees will be beneficial to large institutional investors. Sebi also allowed mutual funds to invest in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), which will give a boost to these new products which will soon be introduced to Indian investors. Currently, Sebi now allows fund houses to charge investors 2 paise for every Rs 100 invested through mutual funds which goes into a corpus that is used for investor education. Of this, 1 paise is given to industry trade body AMFI to spread awareness about the fund industry. Last year AMFI had about Rs 140 crore which is expected to rise to about Rs 175 crore this year. Top officials believe AMFI will use part of this corpus to bring in brand ambassadors for the fund industry.
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