A query sent to Morningstar didn't elicit any response at the time of going to press. Meanwhile, the distributors’ body has requested Sebi to give them a chance to present the findings of their latest report.
Sebi has been nudging the industry to make mutual funds more cost-efficient. In March, the market regulator decided to reduce the additional expenses charged by mutual funds by 15 basis points.
“Based on data and the recommendations of Mutual Fund Advisory Committee (MFAC), the board approved the proposal to reduce the maximum additional expense permitted to be charged to a mutual fund scheme from 20 basis points to five basis points,” Sebi had said in a note.