On Friday, Capital markets regulator Sebi said it had started a detailed study on fees and expenses charged by mutual funds.

The Securities and Exchange Board of India (Sebi) said in a statement that the study would strive to provide data as input for decision-making.

These policies will seek to balance the need to promote financial inclusion, encourage new entrants, exploit economies of scale, encourage technology adoption, discourage cross-subsidisation across projects, close arbitrage opportunities, and deter misconduct.

The regulator has begun “a detailed study of the existing rules applicable to mutual fund scheme fees and expenses in the light of market practice”.

If required, appropriate policy measures will be taken based on the research, following established procedures for consultation with stakeholders and the public.

The move is part of an ongoing campaign to adjust regulations to reflect market dynamics and their impact on investor interest. Currently, 43 players in the mutual fund space collectively manage over Rs 40 lakh crore in assets.