Market regulator Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Wednesday said Direct Plans will become the default option on the digital platforms of asset management companies (AMCs) from November 1, with investors opting for Regular Plans to be informed about their higher expense ratios.
The move aims to improve transparency in mutual fund investments and help investors understand the cost implications of their choices. Direct Plans generally have lower expense ratios because they do not involve distributor commissions, while Regular Plans are sold through distributors and carry higher costs.
Addressing NDTV Profit IGNITE in Mumbai, Pandey outlined a broader regulatory agenda covering primary markets, foreign portfolio investors, corporate bonds, investor protection and the use of artificial intelligence in securities-market supervision.
Pandey said SEBI was reviewing listing and disclosure obligations and would revisit the regulatory framework governing mainboard initial public offerings (IPOs) and follow-on public offers (FPOs). The regulator is also examining the SME IPO framework and the Innovators Growth Platform to improve access to public capital for growing businesses.
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