What Will SEBI Discuss at the Board Meeting on December 17, 2025?

The Securities and Exchange Board of India (SEBI) is scheduled to hold its board meeting on Wednesday, December 17, to deliberate on a wide-ranging set of regulatory reforms affecting mutual funds, stock brokers and internal governance. 

According to PTI reports, the proposals aim to enhance transparency, strengthen ethical standards and modernise market regulations in line with evolving practices.

Proposed Changes to Mutual Fund Expenses

One of the most significant items on the agenda relates to how mutual fund expenses are charged to investors. SEBI is considering excluding statutory levies such as securities transaction tax, commodity transaction tax, stamp duty and Goods and Services Tax from the total expense ratio charged by asset management companies. 

Instead of being absorbed within the TER, these levies would be passed on separately. Currently, only GST on management fees is charged over and above the TER, while other statutory charges are included within the cap. 

SEBI believes this change could improve cost transparency for investors and ensure that future changes in government taxes are clearly reflected.

Governance and Conflict of Interest Measures

The board will also review recommendations from a high-level panel on conflict of interest. The panel has proposed stricter ethical norms, including public disclosure of assets by senior SEBI officials, limits on expensive gifts, a secure whistleblower mechanism and a two-year cooling-off period for post-retirement roles. 

The creation of a Chief Ethics and Compliance Officer has also been suggested to strengthen internal oversight.

Broader Regulatory Reforms

Beyond mutual funds and governance, SEBI is expected to discuss revisions to brokerage-related provisions and the removal of the additional 5 basis points that asset management companies were earlier allowed to charge. 

The board may also consider updates to the Stock Broker Regulations, including a formal definition of algorithmic trading to plug regulatory gaps. 

Other proposals include relaxed KYC norms for non-resident Indians and the possible introduction of a closing auction session in the markets.

Also Read: SEBI Strengthens Governance Framework for MIIs!

Conclusion

The December 17 SEBI board meeting could mark an important step toward greater transparency, stronger governance and modernised market regulations. If approved, these reforms may significantly influence how investors experience costs, compliance and fairness across India’s capital markets.

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