The Central Depository Company (CDC) has significantly reduced its service tariff for the mutual fund industry up to 57% applicable to different categories of funds. Apart from the said reduction, CDC has also rationalised the trustee fee for small sized mutual funds / schemes by permanently eliminating the minimum fee component and implementing flat rate instead of slab system. This reduction will be effective from July 01, 2019 and is expected to facilitate asset management companies in making their funds / schemes more investment-worthy in the current challenging times.
This is not the first time CDC has reduced its service tariff. In fact, in the past, the tariffs for depository services (both custody and transaction fee) and trustee services have been reduced a number of times.
