Asset Management Companies – Event Update – SEBI draft TER regulations: More negative for brokers than AMCs
Published on 29 Oct 2025
We expect AMCs may pass on the 5bps equity TER cut to other industry participants however assuming no pass through, core earnings for ICICI Pru, HDFCAMC, NAM, ABSL AMC and UTIAM would be affected by 8.0-9.0%. The impact would be more severe for CRAMC at ~22% due to ~90% equity share. This negative effect has been partly neutralised by proposing a performance-based TER (framework to be finalised).
PL View: AMCs would be allowed to charge additional performance-based TER which would be a positive, increasing revenue; final guidelines are awaited.
