New Delhi, Oct. 29 -- The Securities and Exchange Board of India (SEBI) has proposed a major overhaul of the mutual fund (MF) fee structure, suggesting that fund expenses could soon be linked to how well schemes perform.

The move is part of a broader consultation paper aimed at aligning fund manager incentives with investor interests and improving cost transparency across the over Rs 75 lakh-crore mutual fund industry.

In the draft regulations, SEBI has introduced a provision for "performance-linked expense ratios", allowing asset management companies (AMCs) to charge variable fees depending on the performance of their schemes. The mechanism would be voluntary, meaning AMCs can choose whether or not to adopt the model.

SEBI said a deta...