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Sebi has proposed a new incentive framework for mutual fund distributors to encourage greater participation from investors
Sebi
Sebi has proposed a new incentive framework for mutual fund distributors to encourage greater participation from investors in cities beyond the top 30 as well as from women investors.
Under the proposal, asset management companies (AMCs) can offer distributors up to Rs 2,000 as additional commission for onboarding new individual investors from non–top-30 cities and for bringing in new women investors. However, to qualify for this incentive, the investor must remain invested for a minimum period of one year, Sebi said in a circular issued on Thursday. The additional payout will be funded through the investor education fund.
The regulator also clarified that distributors will be eligible for the extra commission for mobilising investments from new women investors even within the top-30 cities. However, dual incentives for the same investor will not be permitted.
The proposed incentive structure is scheduled to come into effect from February 1, 2026.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 28, 2025, 07:42 IST
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