MANU/SMFD/0015/2012

Ministry : Securities and Exchange Board of India

Department/Board : Investment Management Department

Circular No. : CIR/IMD/DF/21/2012

Date : 13.09.2012

Notification/ Circulars Referred: Circular no. CIR No.10 / 310 /01 dated September 25, 2001 MANU/SMFD/0014/2001; MFD/CIR/20/23230/2002 dated November 28, 2002 MANU/SMFD/0026/2002; SEBI/MFD/CIR No.01/6693/03 dated April 03, 2003 MANU/SMFD/0001/2003; SEBI/IMD/CIR No.2/254/04 dated February 04, 2004 MANU/SMFD/0001/2004; Cir / IMD / DF / 5 / 2010 dated June 24, 2010 MANU/SMFD/0025/2010; Circular no. SEBI/IMD/CIR No. 11/142521/08 dated October 24, 2008 MANU/SMFD/0032/2008; Cir/IMD/DF/19/2010 dated November 26, 2010 MANU/SMFD/0048/2010; Circular no. SEBI/IMD/CIR No. 15/157701/2009 dated March 19, 2009 MANU/SMFD/0020/2009; Circular no. MFD/CIR/15/19133/2002 dated September 30, 2002 MANU/SMFD/0027/2002; Circular no. Cir/ IMD/ DF/13/ 2011 dated August 22, 2011 MANU/SMFD/0012/2011

Referred IN

All Mutual Funds/Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds
Sir / Madam,

Steps to re-energise Mutual Fund Industry

In order to increase penetration of mutual fund products and to energise the distribution network while protecting the interest of investors, SEBI held a series of meetings with various stakeholders in the mutual fund industry. Mutual Fund Advisory Committee (MFAC) also deliberated and offered its recommendations on issues confronted by the industry. Pursuant to SEBI Board's approval to various recommendations, it has been decided to implement the following:

A. Total Expense Ratio (TER)

1. Additional TER can be charged up to 30 basis points on daily net assets of the scheme as per regulation 52 of SEBI (Mutual Funds) Regulations, 1996 (hereinafter referred to as Regulations), if the new inflows from beyond top 15 cities are at least (a) 30% of gross new inflows in the scheme or (b) 15% of the average assets under management (year to date) of the scheme, whichever is higher.