Regulatory Alerts2025-11-27
Additional incentives to distributors for onboarding new individual investors from B-30 cities and women investors
The Securities and Exchange Board of India (SEBI) has revised the incentive structure for mutual fund distributors to promote onboarding of new individual investors from B-30 cities and women investors. Asset Management Companies must pay an additional commission of 1% of the first-year investment, capped at ₹2,000, which is funded from the mandatory investor education allocation. This framework replaces the deleted Regulation 52(6A)(b) and applies to most mutual fund schemes, excluding specific short-duration and ETF products, with implementation standards to be issued by AMFI within 30 days.
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