Earlier, the brand new incentive construction, aimed toward selling wider outreach and consciousness, was scheduled to be efficient from February 1, 2026.
In keeping with the classification used within the mutual fund trade, B-30 refers to locations past the highest 30 cities.
Based mostly on the suggestions acquired from the trade, citing operational difficulties in putting in the requisite methods and processes for clean implementation of the extra incentive construction, Sebi has determined to increase the implementation timeline.
Accordingly, the brand new provisions will now come into impact from March 1, 2026, Sebi stated in its round.
Beneath the brand new framework, asset administration firms (AMCs) can pay these distributors 1 per cent of the primary lump-sum funding or the first-year SIP quantity, as much as Rs 2,000, offered the investor stays invested for not less than a yr.
This fee will come from the two foundation factors AMCs already put aside for investor schooling, and will likely be paid over and above current path commissions. Nonetheless, no twin incentives will likely be allowed for a similar lady investor from B-30 cities. The extra fee won’t apply to ETFs, sure Fund of Funds, and really short-duration schemes like in a single day, liquid, ultra-short, and low-duration funds.
“The mutual fund distributors shall be eligible for added fee (for bringing) — new particular person traders (new PAN) from B-30 cities, on the mutual fund trade stage; and New ladies particular person traders (new PAN) from each high 30 and B-30 cities,” Sebi had acknowledged.
Earlier, Sebi had offered a framework for incentivising distributors for brand new funding/inflows from past the highest 30 cities (B-30 cities). Nonetheless, on account of considerations of misuse of this framework, based mostly on the suggestions acquired from the trade, the regulator has determined to revise the motivation construction for distributors for bringing in new funding within the mutual funds.
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