HDFC AMC shares jump 15%, hit 52-week high after Sebi defers decision to overhaul TER regulations

Shares of HDFC Asset Management Company (AMC) jumped nearly 15% and hit their 52-week high of Rs 2,349.90 on Friday, triggered by the market regulator’s decision to defer the overhauling of TER (Total Expense Ratio) regulations.

At 11:10 am, over 38 lakh HDFC AMC shares were trading on the NSE, with the value of these shares standing at Rs 855.98 crore.

The decision to defer the overhauling exercise was taken by the Securities and Exchange Board of India (Sebi) in its board meeting on Wednesday. Later, Sebi Chairperson Madhabi Puri Buch said that the market regulator would come with another consultation paper on this issue.


TER is the expense that mutual fund (MF) schemes can charge from the investors for the management of funds. Sebi had previously said that it would rationalise the TER, given the growing traction for these instruments and pass on the benefit to the investors. The industry was opposed to the scheme and cited a likely hit on their businesses.

"The MF industry will be quite happy with our second set of proposals," Buch said on Wednesday, hinting at a probable dilution in the proposals.

The HDFC AMC shares have gained nearly 43% since hitting their 52-week low of Rs 1,589.50 in March this year. The stock has traded mixed over the past 5-6 sessions moving on either side.

The stock has been relatively volatile and traded with a 1-month beta of 1.9, according to Trendlyne. The Price to Book (PB) value stands at 10.6, which is above the industry median.

The stock is also trading above its 50-day and 200-day Simple Moving Average (SMA).

Other stocks which gained on the news were UTI AMC and Aditya Birla Sun Life AMC, which were up over 8% and 5%, respectively.

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