By Admin 
There is news of great relief for those investing in the Indian market. SEBI (Securities and Exchange Board of India) has released a new consultation paper, in which it has been proposed to reduce the fees and expenses associated with Mutual Funds and Derivative Trading. Under this proposal, it has been recommended to reduce the Total Expense Ratio (TER) of open-ended mutual funds by 0.15% and in closed-end schemes by 0.25%. Also, it has been suggested to reduce Cash Market Brokerage from the current 12 Basis Points to only 2 Basis Points and for Derivatives Trading from 5 to 1 Basis Point. SEBI aims to make the investment process more transparent, affordable and investor-friendly. Apart from this, instructions have also been given to show all Brokerage, Tax and Transaction Charges separately and make their information public in advance. Also, AMCs will be allowed to adopt Performance Linked Fees Structure. This step can prove to be a major improvement in increasing cost efficiency and transparency for Indian investors.