BUZZ-India easing mutual fund fee rules to help some asset managers, Citi say

** Shares of Indian asset managers rise up to 6.2% after markets regulator approved changes to mutual fund fee structure to encourage disclosure of transparent break-up of costs

** SEBI raised the brokerage cap for mutual funds to 6 bps from 2 bps on equity trades, making compliance easier and cutting cost pressure after feedback that a sharp reduction could curb fund managers' ability to pick stocks

** Average stock transaction costs for fund managers are set to drop by 10–15 bps from current levels of up to 12 bps

** Citi says the impact is almost neutral for large asset management cos and slightly positive for mid-scale firms with high distributor payouts

** Nippon Life India Asset Management NIPF.NS rises the most at 6.2%, followed by HDFC AMC HDFA.NS and UTI AMC UTIA.NS, which rise 4.15% and 2.73%, respectively

** Adds, wealth managers like Nuvama NUVA.NS, 360 One ONEW.NS to see minimal impact of less than 1% of consolidated revenue

** NUVA and ONEW up 2.38% and 0.83%

(Reporting by Urvi Dugar in Bengaluru)

((UrviManoj.Dugar@thomsonreuters.com;))