Limitation on fees and expenses on issue of schemes

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....paid by the fund ; (xi) winding up costs for terminating a fund or a scheme ; (xii) costs of statutory advertisements ;] 6[****] 7[(xii-a) in case of a gold exchange traded fund scheme, recurring expenses incurred towards storage and handling of gold; 8[****]] 26[(xiiaa) in case of a silver exchange traded fund scheme, recurring expenses incurred towards storage and handling of silver;] 9[(xii-b) in case of a capital oriented scheme, rating fees; 10[****]] 11[(xii-c) in case of a real estate mutual fund scheme, insurance premia and costs of maintenance of the real estate assets (excluding costs of development of such assets) over and above the expenses specified in regulation 52 to the extent disclosed in the offer document;] 12[(xii-d) listing fees, in case of schemes listed on a recognised stock exchange; and] 25[(xiie) in case of schemes investing in exchange traded commodity derivatives, recurring expenses incurred towards storage and handling of the underlying goods, due to physical settlement of such contracts.] 13[(xiii)] such other costs as may be approved by the Board. 28[(4A) The asset management company shall pay charges or commission or fees related t....

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....f the daily net assets. (c) in case of open ended schemes other than as specified in clause (a) and (b) above, the total expense ratio of the scheme shall not exceed the following limits: Assets under management Slab (In Rs. crore) Total expense ratio limits for equity oriented schemes Total expense ratio limits for other than equity oriented schemes on the first Rs. 500 crores of the daily net assets 2.25% 2.00% on the next Rs. 250 crores of the daily net assets 2.00% 1.75% on the next Rs. 1,250 crores of the daily net assets 1.75% 1.50% on the next Rs. 3,000 crores of the daily net assets 1.60% 1.35% on the next Rs. 5,000 crores of the daily net assets 1.50% 1.25% On the next Rs. 40,000 crores of the daily net assets Total expense ratio reduction of 0.05% for every increase of Rs. 5,000 crores of daily net assets or part thereof. On balance of the assets 1.05% 0.80% (d) in case of close ended and interval schemes, (i) the total expense ratio of equity oriented scheme(s) shall not exceed 1.25 per cent of the daily net assets of the scheme. (ii) the total expense ratio of close ended and interval scheme(s) other than schemes specified in clause d (i) ....

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.... year." 3 Substituted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2012, w.e.f. 01-10-2012, for the words "mutual fund". 4 Omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. Prior to omission, sub-regulation (4)(a) read as under; "*[initial expenses of launching close-ended schemes, which shall be accounted in the books of account of the scheme in accordance with the Tenth Schedule;]"   [*Inserted by the SEBI (Mutual Funds) (Second Amendment) Regulations, 2006, w.e.f. 22-5-2006] 5 Sub-clause (vii) to (xii) inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 1998, w.e.f. 12-1-1998. 6 The word 'and' omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2006, w.e.f. 12-1-2006. 7 Inserted by ibid. 8 The word 'and' omitted by the SEBI (Mutual Funds) (Third Amendment) Regulations, 2006, w.e.f. 3.8.2006. 9 Inserted by ibid. 10 The word 'and' omitted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008. 11 Substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2009, w.e.f. 8-4-2009. Prior to its substitution, sub-regulation (xii-b) read as under; "*[(xii-b) in case of a r....

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....: Provided that in respect of a scheme investing in bonds such recurring expenses shall be lesser by at least 0.25% of the daily net assets outstanding in each financial year." [Prior to the above substitution, sub-regulation (6) was substituted by the SEBI (Mutual Funds) (Amendment) Regulations, 2010, w.e.f. 29-7-2010, which read as under; "*[(6) The total expenses of the scheme excluding issue or redemption expenses, whether initially borne by the mutual fund or by the asset management company, but including the investment management and advisory fee shall be subject to the following limits :- (i) On the first Rs. 100 crores of the average weekly net assets 2.5%; (ii) On the next Rs. 300 crores of the average weekly net assets 2.25%; (iii) On the next Rs. 300 crores of the average weekly net assets 2.0%; (iv) On the balance of the assets 1.75% : Provided that such recurring expenses shall be lesser by at least 0.25% of the weekly average net assets outstanding in each financial year in respect of a scheme investing in bonds : Provided further that in case of a fund of funds scheme, the total expenses of the scheme including the management fees shall not exceed 0.75% of t....