Direct Plans to Be Default on AMC Digital Platforms From Nov 1
SEBI chairman Tuhin Kanta Pandey announced the change at the NDTV Profit IGNITE summit in Mumbai.
Key Takeaways
- Direct plans become the default option on AMC digital platforms from 1 November.
- SEBI chairman Tuhin Kanta Pandey announced it on 28 October 2026 in Mumbai.
- He spoke at the NDTV Profit IGNITE summit.
- Investors choosing regular plans must be told about the higher expense ratio.
- Regular plans carry distributor commissions, direct plans do not.
Direct plans will become the default option on the digital platforms of asset management companies (AMCs) from 1 November, SEBI chairman Tuhin Kanta Pandey said on 28 October 2026. He made the announcement at the NDTV Profit IGNITE summit in Mumbai.
Investors who choose regular plans on these platforms must be told about their higher expense ratio. The announcement applies to the digital platforms of AMCs.
Direct plans as the default option at a glance
| Detail | Value |
|---|---|
| Announced by | Tuhin Kanta Pandey, chairman, SEBI |
| Announced on | 28 October 2026 |
| Where | NDTV Profit IGNITE summit, Mumbai |
| Change | Direct plans to be the default option on AMC digital platforms |
| Starts | 1 November |
| Disclosure for regular plans | Investors must be informed about the higher expense ratio |
How direct plans differ from regular plans
Direct plans are bought straight from the fund house, without a distributor. Regular plans are sold through distributors, and their expense ratio includes the distributor's commission, so it is higher than that of a direct plan.
The change decides which plan an investor sees first on an AMC's own app or website. Regular plans continue to be offered, and an investor who picks one has to be told about the higher expense ratio.
Where direct plans stand from 1 November
From 1 November, direct plans are the default choice on the digital platforms of AMCs, as announced by SEBI's chairman at the NDTV Profit IGNITE summit. Regular plans stay available, and investors who choose them must be told about their higher expense ratio.
More news
Frequently Asked Questions
What is changing for direct plans from 1 November?
Who announced the direct plans change?
Where was the direct plans announcement made?
When was the direct plans announcement made?
When do direct plans become the default option?
What are direct plans?
What are regular plans?
How do regular plans differ from direct plans in cost?
How must AMC platforms treat investors who choose regular plans?
How are direct plans sold?
Which platforms does the direct plans default apply to?
How does the direct plans default affect regular plans?
More in Mutual Funds
Invesco Mutual Fund Opens Silver ETF and Silver FoF NFOs
Invesco Mutual Fund has opened an India Silver ETF and a Silver ETF Fund of Fund for subscription.
ICICI Prudential Mutual Fund Opens BSE Power ETF NFO
ICICI Prudential Mutual Fund has opened the NFO of its BSE Power ETF, running until October 30.
UTI Mutual Fund Opens New Age Consumption Index Fund NFO
UTI Mutual Fund has opened the NFO of a new index fund that tracks new age consumption stocks.