Sebi Board Agenda: MF Expense Ratios and Broker Rules
Why in the news
Sebi’s coming board meeting was set to consider reforms that lower investor costs, update rules and simplify IPO procedures.
Key facts
- Stock Brokers Regulations to be eased and matched to the Companies Act, 2013, with new definitions of algorithmic trading, proprietary trading and execution-only platforms.
- TER revisit: an earlier 2023 attempt met resistance; revised plan came October 2025.
- Under ICDR Regulations, non-promoter pledged shares of IPO-bound firms may be locked-in.
| Brokerage | Now | Proposed |
|---|---|---|
| Cash market | 12 bps | 2 bps |
| Derivatives | 5 bps | 1 bp |
Other proposals
- Drop the compulsory abridged prospectus and trim offer-document summaries.
- Wider conflict-of-interest disclosure (assets, liabilities, trading, relationships) per a committee formed in March.
- Debt issue incentives such as higher coupons or discounts for some investors; easier dematerialisation.
Exam angle
- TER = Total Expense Ratio. ICDR governs IPO disclosures.