Mutual fund reach: Sebi unveils new distributor incentives; extra payouts for B-30 and new women investors
Designed to widen outreach and improve awareness, the new structure will take effect from February 1, 2026, Sebi said in a circular, PTI reported.Under the plan, asset management companies (AMCs) will pay distributors 1 per cent of the first lump-sum investment or first-year SIP amount, capped at Rs 2,000, as long as the investor remains invested for at least a year.
The commission will be funded from the 2 basis points already set aside by AMCs for investor education and will be paid over and above existing trail commissions. “The mutual fund distributors shall be eligible for additional commission (for bringing) — new individual investors (new PAN) from B-30 cities… and new women individual investors (new PAN) from both Top 30 and B-30 cities.” Sebi said.
No dual benefits will be allowed for the same woman investor from B-30 cities.
The additional commission will not be available for ETFs, certain Fund of Funds, or short-duration schemes such as overnight, liquid, ultra-short, and low-duration funds.Industry body AMFI will issue implementation guidelines within 30 days, and any changes made to scheme documents to reflect the new structure will not qualify as fundamental changes.Sebi noted that while incentives were earlier provided for fresh inflows from B-30 cities, concerns about misuse prompted the regulator to overhaul the framework for distributors bringing in new investments.
