HDFC AMC eyes 4 regulatory tailwinds after Sebi tweaks expense ratio rule, brokerages see upside intact
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HDFC Asset Management Company is emerging from a two-year regulatory cloud after the Securities and Exchange Board of India’s final overhaul of mutual fund expense rules reduced the severity of proposed fee cuts, restoring visibility on earnings and valuations for the country’s largest asset managers, with the stock rising more than 7% in the previous session. The rally on Thursday followed Sebi’s decision to introduce a base expense ratio that separates statutory levies such as GST from core fund management costs, while retaining the overall total expense ratio framework. The final rules, announced after the regulator’s board meeting, were widely viewed as far less punitive than feared and are set to take effect from April 1, 2026. Uncertainty around mutual fund fees has weighed on AMC stocks since 2023, triggering sharp corrections after Sebi’s October consultation paper. Brokerages say the final framework delivers four clear positives ...