Sebi\'s move on expense ratio puts paid to Avendus Capital-IDFC MF deal

Sebi's move on expense ratio puts paid to Avendus Capital-IDFC MF deal

The financial services firm revised its bid, fearing the new structure's impact on profitability

Samie Modak & Jash Kriplani  |  Mumbai 

The capital markets regulator Securities and Exchange Board of India’s (Sebi) decision to tweak the total expense ratio (TER) structure for the Rs 24-trillion mutual fund (MF) industry is a key reason for the deal between IDFC MF and Avendus Capital collapsing, said people with the direct knowledge of the development. The deal between Avendus and IDFC had reached advanced stages.

According to people in the know, Avendus revised its bid after the TER structure was tweaked, fearing impact on the fund house’s profitability. They added that as Avendus’ new offer was ...

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First Published: Fri, December 21 2018. 22:45 IST