{"id":16292,"date":"2025-10-29T10:48:12","date_gmt":"2025-10-29T05:18:12","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=16292"},"modified":"2025-10-29T10:54:34","modified_gmt":"2025-10-29T05:24:34","slug":"sebi-fee-overhaul-hits-hdfc-amc-motilal-oswal-shares","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/sebi-fee-overhaul-hits-hdfc-amc-motilal-oswal-shares\/","title":{"rendered":"HDFC AMC, Motilal Oswal Fall as SEBI Proposes Fee Overhaul"},"content":{"rendered":"

Shares of several capital market companies fell sharply on October 29, following the Securities and Exchange Board of India’s (SEBI) proposal of major changes to mutual fund fee structures, which could impact the profitability of asset management firms.<\/p>\n

Market Reaction<\/h2>\n

Stocks of HDFC Asset Management Company<\/a> (HDFC AMC) and Motilal Oswal Financial Services<\/a> led the decline, falling as much as 7% during the session. This marked HDFC AMC\u2019s biggest single-day fall since June 2024.<\/p>\n

Nippon Asset Management<\/a> shares also slipped by 2.8%, while wealth management firms such as Nuvama Wealth<\/a> and 360 One Wam<\/a> declined by up to 4%.<\/p>\n

Also Read<\/strong>: Lenskart IPO Opens on Oct 31: Price Band, GMP, and Key Details Investors Should Know<\/a><\/em><\/p>\n

Analysts\u2019 Warning<\/h2>\n

Analysts at Jefferies noted that SEBI\u2019s proposed fee structure overhaul could significantly hit profitability in the coming years.<\/p>\n

\n

\u201cThe move could bring down profit before tax by about 30\u201333% for HDFC AMC and Nippon AMC by 2027,\u201d Jefferies said in its note.<\/p>\n<\/blockquote>\n

SEBI\u2019s Proposal Explained<\/h2>\n

According to SEBI\u2019s consultation paper released on October 28, the regulator is seeking to:<\/p>\n

    \n
  • \n

    Simplify the mutual fund fee structure for better transparency.<\/p>\n<\/li>\n

  • \n

    Introduce a clearer break-up of costs charged to investors.<\/p>\n<\/li>\n

  • \n

    Review expense ratios and brokerage fees currently levied by mutual funds.<\/p>\n<\/li>\n<\/ul>\n

    In addition, SEBI proposed to discontinue the 5 basis points (bps) charge that mutual funds currently impose on equity funds where an exit load is levied.<\/p>\n

    The proposal aims to create a more transparent and investor-friendly cost structure across the mutual fund industry.<\/p>\n

    Impact on the Industry<\/h2>\n

    The announcement triggered a sharp sell-off in listed asset and wealth management companies as investors anticipated margin pressure and lower profitability.
    While SEBI\u2019s move aims to enhance transparency for investors, the industry may face short-term challenges as the revised structure could impact\u00a0fee income and revenue growth.<\/p>\n

    Conclusion<\/h3>\n

    The market\u2019s reaction reflects investor concerns over the potential impact of SEBI\u2019s reforms on profitability for asset management firms. With the consultation paper still under review, the final framework will determine how significantly these firms\u2019 business models are affected in the coming years.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Shares of several capital market companies fell sharply on October 29, following the Securities and Exchange Board of India’s (SEBI) proposal of major changes to mutual fund fee structures, which could impact the profitability of asset management firms. Market Reaction Stocks of HDFC Asset Management Company (HDFC AMC) and Motilal Oswal Financial Services led the […]<\/p>\n","protected":false},"author":7,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[1384],"class_list":{"0":"post-16292","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1384,"user_id":7,"is_guest":0,"slug":"jitesh-kanwariya","display_name":"Jitesh Kanwariya","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/08\/Jitesh-Kanwriya.jpeg","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/08\/Jitesh-Kanwriya.jpeg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/16292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=16292"}],"version-history":[{"count":3,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/16292\/revisions"}],"predecessor-version":[{"id":16296,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/16292\/revisions\/16296"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/16294"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=16292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=16292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=16292"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=16292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}