The Securities and Exchange Board of India (SEBI) may negatively impact India's mutual fund sector with its proposal to review total expense ratio (TER) regulations, according to brokerage Nuvama. The sector's net profitability could fall by up to 27% from listing asset managers' 2024-25 net operating profits due to changes potentially increasing annual fees to include items such as securities transaction tax (STT) and brokerage. These changes could decrease HDFC AMC's profit margins by 27.2%, while for Nippon Life and Aditya Birla they could fall by 25.1% and 20.9%, respectively.