Mumbai, Dec 21: The Securities and Exchange Board of India (SEBI) on Sunday clarified that there is no change in the existing regulatory framework for short selling.
The market regulator said that “a media article has incorrectly reported about changes in short selling framework which would become applicable from December 22, 2025”.
The SEBI on Wednesday approved a comprehensive overhaul of mutual fund regulations to improve cost transparency and reduce the expense burden on investors.
The changes were cleared by the SEBI board and will be implemented through the new SEBI (Mutual Funds) Regulations, 2026, replacing the existing 1996 framework after a detailed review. At the core of the reform is a revamp of the Total Expense Ratio (TER) framework.
The SEBI has approved the exclusion of statutory and regulatory levies — including securities and commodities transaction tax (STT/CTT), GST, stamp duty, SEBI fees and exchange charges — from TER calculations. These levies will now be charged on actuals, over and above the Base Expense Ratio (BER), giving investors a clearer picture of fund management costs.
Under the revised structure, TER will comprise three components: base expense ratio, brokerage costs, and statutory or regulatory levies. The SEBI has also removed the additional 5 basis points (bps) expense allowance that was earlier linked to exit loads.
