SEBI’s cost-cutting proposal triggered heavy selling in AMC stocks, aiming to reduce expense ratios, brokerage caps, and align investor interests.

• Mutual fund stocks tumbled as SEBI proposed slashing expense ratios, linking fees to fund performance, and lowering brokerage limits drastically.
• Proposed changes could squeeze revenues for large asset management companies with high AUMs or operational leverage, sparking investor panic.
• SEBI aims to enhance transparency, curb double charging, and ensure better returns for investors through tighter cost and performance alignment.