Section 52: Limitation on fees and expenses on issue of schemes

Q: What does Section 52 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) deal with?

Section 52 TSMFR pertains to "Limitation on fees and expenses on issue of schemes". It is part of the The SEBI (Mutual Funds) Regulations, 1996, a legislation enacted by the Parliament of India. Section 52 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) governs limitation on fees and expenses on issue of schemes. As verified on 19 May 2026.

Q: Is Section 52 TSMFR still in force?

Yes, Section 52 of the The SEBI (Mutual Funds) Regulations, 1996 is currently in force across the Republic of India.

Q: What is धारा 52 TSMFR?

धारा 52 TSMFR is the Devanagari Hindi reference for Section 52 of the The SEBI (Mutual Funds) Regulations, 1996. Section 52 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) governs limitation on fees and expenses on issue of schemes. As verified on 19 May 2026.

Q: What is Dhara 52 TSMFR?

Dhara 52 TSMFR is the Roman Hindi reference for Section 52 of the The SEBI (Mutual Funds) Regulations, 1996. "Dhara" means "Section" in Hindi. Section 52 of The SEBI (Mutual Funds) Regulations, 1996 (TSMFR) governs limitation on fees and expenses on issue of schemes. As verified on 19 May 2026.

Q: How to cite Section 52 of The SEBI (Mutual Funds) Regulations, 1996?

Cite as: "Section 52, The SEBI (Mutual Funds) Regulations, 1996 (TSMFR)" in legal briefs. For academic writing, use the BlueBook format: The SEBI (Mutual Funds) Regulations, 1996, § 52 (India).

Law on Tips Editorial Board

(1)

All expenses should be clearly identified and appropriated in the individual schemes.

(2)

The Asset Management Company may charge the mutual fund with investment and advisory fees which are fully disclosed in the offer document subject to the following namely:-

(i) One and a quarter of one per cent of the weekly average net assets outstanding in each accounting year for the scheme concerned, as long as the net assets do not exceed Rs.100 crores, and

(ii) One per cent of the excess amount over Rs.100 crores, where net assets so calculated exceed Rs.100 crores.

(3)

[ ***] [Omitted '(3)' Notification No. LAD-NRO/GN/2010-11/13/13945, dated 29.7.2010.]

(4)

In addition to the fees mentioned in sub-regulation (2), the asset management company may charge the mutual fund with the following expenses, namely:-

(a) initial expenses of launching schemes:-

(b) recurring expenses including:-

(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.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/011, dated 26.4.2019.]

(xiii) such other costs as may be approved by the Board.

(5)

Any expense other than those specified in sub-regulations (2) and (4) shall be borne by the asset management company [or trustee or sponsors] [Substitute by S.O. 32(E), dated 12.1.1998].

Provided that initial expenses of floating the scheme shall not exceed six per cent of the initial resources raised under that scheme and such expenses shall be accounted in the books of accounts of the scheme as specified in the Tenth Schedule.

[Provided further that any excess over the 6% initial issue expenses shall be borne by the asset management company.] [Substituted by S.O. 32(E), dated 12.1.1998]

(5A)

[ In case of a scheme other than an index fund scheme or an exchange traded fund, where, as per the scheme information document, the scheme will invest a minimum of sixty-five per cent of its net assets in equity and equity related instruments, the scheme will be considered as equity oriented scheme for the purpose of limits of total expense ratio as specified in these regulations.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/51, dated 13.12.2018.]

(6)

[ The total expense ratio 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: -

(a) in case of fund of funds scheme -

(b) in case of an index fund scheme or exchange traded fund, the total expense ratio of the scheme including the investment and advisory fees shall not exceed 1.00 per cent of 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:

(d) in case of close ended and interval schemes,

(7)

Any expenditure in excess of the limits specified in sub-regulation (6) shall be borne by the asset management company [or by the trustee or sponsors] [Instituted by S.O. 32(E), dated 12.1.1998]] [Substituted by Notification No. SEBI/LAD-NRO/GN/2018/51, dated 13.12.2018.].

(8)

The provisions of sub-regulations (3), (4), (5) and (6) will come into effect after [into effect] [Inserted by S.O. 32(E), dated 12.1.1998] three months from the date of notification of these regulations [from 1st April, 1997] [Substituted by S.O. 327(E), dated 15.4.1997] mutual funds which have been launched prior to notification of these regulations.