SEBI Extends Feedback Deadline for Mutual Fund Rule Overhaul

India’s capital markets regulator, SEBI, has extended the deadline for public comments on a consultation paper proposing sweeping changes to mutual fund regulation. 

The extension arrives amid industry feedback and aims to facilitate broader stakeholder input into key reforms affecting fund governance and cost structure. 

Regulatory Actions & Feedback Extension 

In its notification, SEBI disclosed that the deadline for submitting responses to the consultation paper originally set for 17 November 2025 has been extended to 24 November 2025. The consultation paper, issued on 28 October 2025, outlines key proposed changes such as a clearer definition for Total Expense Ratio (TER), elimination of the additional 5 basis-points charge on schemes, and exclusion of statutory levies like STT, GST, CTT and stamp duty from TER-calculation.  

The regulator emphasised that the extension was granted “based on representations received”. 

Industry Context & Implications 

The document signals SEBI’s intent to streamline mutual-fund cost disclosures and reduce compliance complexities for asset-management companies. By revising brokerage limits and revisiting expense structures, the regulator seeks to strengthen transparency and align Indian norms with global best practices.  

The delay in the feedback deadline suggests that SEBI is navigating considerable stakeholder engagement and may modify its proposals in response to industry concerns. 

Read More: SEBI Proposes Incentives to Boost Retail Investment in Public Debt Issues! 

Conclusion 

SEBI’s extension of the consultation-period deadline underscores its commitment to inclusive reform in India’s mutual-fund sector. Allowing an extra week for feedback reflects the regulator’s responsiveness to stakeholder input and may enhance the quality of final rules. As the process moves forward, the fund industry and investors alike will be watching how the proposed changes take shape and impact cost structure, governance and investor protection frameworks. 

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