New Delhi, Dec. 24 -- Mutual funds are pushing back against the Indian market regulator's proposal to introduce a fee linked to good performance, citing the difficulty of calculating these amounts.

The Securities and Exchange Board of India (Sebi) announced a proposal on 28 October requiring mutual funds to charge a performance-based expense ratio in a scheme, along with other measures to revamp regulations in the sector.

Some fund houses have individually submitted feedback to Sebi on the complexities of charging a performance fee, six people aware of the matter told Mint. A discussion on the matter at the Association of Mutual Funds in India level is yet to happen, three of them said.

The key concern for asset management companies (A...