(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:-

(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:-

(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.]

(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: -

(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.