SEBI Defers MF Distributor Incentive for B-30 and Women Investors
Why in the news
SEBI gave mutual fund distributors more time; the extra incentive framework now begins on 11 March, not 1 February.
Aim
- Draw new individual investors from B-30 cities (outside the top 30).
- Attract more women investors from any city.
Key facts
| Parameter | Rule |
|---|---|
| Eligible | New PAN holders in B-30; new women investors in T-30 and B-30 |
| Payout | 1% of the first lump sum or first-year SIP |
| Cap | ₹2,000 per investor |
| Holding | At least one year |
| Funding | 2 basis points already earmarked for investor education, paid on top of trail commissions |
Exclusions
- No dual incentive for one woman investor from B-30.
- Not for ETFs, certain Fund of Funds, or overnight, liquid, ultra-short and low-duration schemes.
Exam angle
- Regulator: SEBI; new date: 11 March.