The study will compare the current regulations related to fees and expenses in various mutual fund schemes with the actual practices carried out by the mutual fund players.
The move is part of the market regulator’s effort to frame regulatory provisions that show different aspects of the market and their effect on investors.
Results from the study will be used to draft policies that align with the existing market scenarios.
In a statement, SEBI said: “The policies as always would seek to balance the need for facilitating financial inclusion, encouraging new participants, leveraging economies of scale, encouraging adoption of technology, discouraging cross-subsidisation across schemes, closing arbitrage opportunities if any, and curbing malpractices if any.”
Besides, SEBI plans to discuss the data from the study with stakeholders and public as per the usual procedure, if required.
The latest development comes after a The Economic Times report in September this year that stated that SEBI could allow private equity (PE) fund to own stake in asset management companies (AMCs) operating in India.
PE funds with INR1.5bn (nearly $19m) net worth and with capability to establish the final beneficiary will be qualified to invest in Indian AMCs, as per sources privy to the development.