Shares of Nippon Life India Asset Management surged over 7% in early trade on Thursday, December 18, 2025 (IST), as asset management companies (AMCs) across India witnessed strong buying interest following a key regulatory move by the Securities and Exchange Board of India (SEBI).
The rally came a day after SEBI, on Wednesday, December 17, 2025, announced a reduction in mutual fund expense ratios, a step aimed at improving transparency, strengthening compliance, and encouraging greater participation from retail investors.
Under the revised framework, SEBI has introduced the concept of a Base Expense Ratio (BER). As per the official announcement, the BER will now exclude all statutory levies such as Goods and Services Tax (GST), stamp duty, SEBI fees, exchange fees, and other regulatory charges. Importantly, the total expense ratio will no longer be calculated by simply adding brokerage, regulatory, and statutory levies to the BER, marking a structural change in how mutual fund costs are disclosed and charged.
SEBI’s decision also includes a cut in expense ratio limits across a wide range of mutual fund categories. These include index funds, exchange traded funds (ETFs), fund of funds (FoFs), equity-oriented schemes investing more than 65% of assets under management (AUM) in equities, closed-ended schemes, and schemes other than equity-oriented funds.
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