The Securities and Exchange Board of India (SEBI) held its meeting on Wednesday, December 17, 2025. This is the fourth meeting led by Chairperson Tuhin Kanta Pandey. With Nifty buzzing around 29,120 and 2026 looking bright for Indian equities, these discussions could shake up how you invest in Mutual Funds, IPOs and more.
Mutual Fund Rules Under Review: Changes to Fees and Commissions
The main topic is the new rules for mutual funds discussed in SEBI's paper from October. They plan to reduce the Total Expense Ratio (TER) by 15 basis points (bps) for open-ended schemes and by up to 25 bps for closed-ended schemes. TER covers all those annoying charges investors pay, but the industry is not thrilled and investors are worried that it will lower the margins or profit.
SEBI wants to make it clearer by removing some taxes from the total expense ratio (TER) cap. These taxes include the Securities Transaction Tax (STT), Goods and Services Tax (GST), Commodity Transaction Tax (CTT) and stamp duty. Pass them straight to investors instead, so you see exactly where your money goes. No more hiding behind the limits. SEBI might call the extra 5 bps charge for asset management companies a "transitory" and might remove it, since exit loads now flow back to schemes.
Brokerage charges are up for grabs, too. The current market caps are 12 basis points for cash markets and 5 basis points for derivatives. There are proposals to lower them to 2 basis points and 1 basis point. However, some insiders say the board might be lenient and set them at 3 to 7 basis points to keep things practical. If you are looking for updates on "SEBI mutual fund TER changes" or "brokerage charges revision," this is your update.
Must Read: Top 10 Mutual Funds for SIP in 2025: Best Picks to Grow Wealth
Governance Overhaul: Ethics, Disclosures and Whistle-Blower Boost
Do not sleep on the high-level committee (HLC) report from November 10. This panel tackled conflicts of interest for SEBI board members, whole-time members (WTMs) and senior staff like chief general managers (CGMs). Here are some of the leading suggestions for you:
- Require public asset and liability disclosures for top officials.
- Create a multi-tier system for disclosures.
- Limit certain investments.
- Establish removal rules.
- Implement a strong whistleblower system.
- Introduce a two-year cooling-off period after retirement for performance issues.
- Stop giving expensive gifts to maintain integrity.
- Appoint a Chief Ethics Officer.
Changes Coming to IPO Rules
If you are interested in IPOs, pay attention. SEBI is reviewing the rules for issuing shares and disclosure requirements for IPOs. One focus is on how to handle pledged shares held by non-promoters. Currently, depositories face challenges with these pledges during the 6-month lock-in period after allocation. Adjusting these rules could make it easier for issuers to navigate the IPO process. They are also considering releasing a shorter outline to attract more retail investors.
Broader market chats include Stock Broker Regulations 1992 updates, a formal algorithmic trading definition (finally addressing gaps), relaxed KYC for NRIs and maybe a closing auction session. These could ripple through brokers, mutual funds and daily trading.
Wrapping it up, this SEBI board meeting packs a punch for anyone eyeing mutual fund investments in 2026 or governance reforms in Indian markets. Stay tuned as decisions here shape TER slabs, brokerage fees and transparency for years.
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