Shares of major asset management companies (AMCs) experienced significant declines on Wednesday following a regulatory announcement from the Securities and Exchange Board of India (SEBI) aimed at overhauling mutual-fund fee structures.
HDFC Asset Management Company was notably affected, witnessing a drop of approximately 6.3%, marking its most substantial single-day decline since June 2024. Other AMCs, including Nippon Life India Asset Management, UTI AMC, and Aditya Birla Sun Life AMC, also faced losses in line with sector peers.
SEBI’s proposed revisions form a comprehensive restructuring of mutual-fund regulations. Key proposals include an upward revision of the base expense ratio slabs by 5 basis points for open-ended equity schemes, the exclusion of statutory levies such as Securities Transaction Tax, Goods and Services Tax, and stamp duty from the Total Expense Ratio (TER) limits, and stricter limits on brokerage costs.
The regulatory changes underscore a challenging environment for fund houses, indicating potential pressures on margins and profitability. Market observers, including investors, are keenly awaiting the final implementation of SEBI’s proposals.
As of 10:24 AM, HDFC AMC was trading 4% lower at ₹5,406.50, hitting a low of ₹5,288 compared to the previous close of ₹5,646.50. Shares of Nippon Life India Asset Management fell 6% to ₹849.60, reaching a low of ₹843.50 from a previous close of ₹904.95. Aditya Birla Sun Life AMC decreased by 4.4% to ₹774.30, while UTI AMC slipped 2% to ₹1,274.80. The newly listed Canara Robeco Asset Management Company also fell over 4% to ₹323.80. Motilal Oswal Financial Services experienced a nearly 8% decline, dropping to ₹1,003.55. Wealth management firms such as Nuvama and 360 ONE WAM saw declines of 3-4%.
Published on October 29, 2025.
