SEBI announces major market reforms in its 212th board meeting

Current Context: On December 17, 2025, the Securities and Exchange Board of India (SEBI) held its 212th Board Meeting in Mumbai.

• It announced a complete overhaul of stock broker rules, replacing the 1992 framework with the SEBI (Stock Brokers) Regulations, 2025.
• The rulebook was simplified from 59 pages to 29, with brokerage caps reduced to 6 bps in cash markets and 2 bps in derivatives.
• SEBI also introduced the Mutual Funds Regulations, 2026, with a new Base Expense Ratio (BER) for fee transparency and removal of extra charges.
• IPO reforms included a 10-page abridged prospectus at the DRHP stage and automatic lock-in marking for pledged shares.
• For High Value Debt Listed Entities (HVDLEs), the compliance threshold was raised from ₹1,000 crore to ₹5,000 crore.
• Investor services timelines were cut from 150 days to 30 days, and CRAs were allowed to rate non-regulated instruments with disclosures.
• Unclaimed dividends/interest will now be transferred to the Investor Protection and Education Fund (IPEF) after 7 years in a single move.

Question:

Q.1 The Securities and Exchange Board of India introduced the Mutual Funds Regulations, 2026 with which provision to enhance fee transparency?
a) Total Expense Ratio
b) Direct Plan Fee Index
c) Base Expense Ratio
d) Uniform AMC Commission

Answer: c) The Securities and Exchange Board of India introduced the Base Expense Ratio (BER) to improve transparency and remove extra charges.