B-30 Incentives Return and Exit Load Capped at 3% by SEBI
Why in the news
SEBI reworked mutual fund distributor incentives to spread inclusion to smaller cities and women, and lowered the exit load ceiling.
Key facts
- B-30 incentive: for new individual investors (new PAN) from beyond the top 30 cities.
- Women investors: extra commission for new women investors, computed the same way.
- Exit load cap: 3%, from 5% earlier (most schemes charged 1-2%).
| Mode | Incentive |
|---|---|
| Lumpsum | 1% of first application amount |
| SIP | 1% of first-year investment |
| Ceiling | ₹2,000 per new investor |
Background
- Suspended in 2023 after misuse: transaction splitting and portfolio churning.
- Revamp brings system-driven checks and tighter controls.
- The new exit cap balances investor protection and flexibility for funds holding less liquid securities.
Exam angle
- B-30 means beyond top-30 cities; exit load ceiling 3%.