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B-30 Incentives Return and Exit Load Capped at 3% by SEBI

22 September 20251 min read
BANKING & FINANCEB-30 IncentivesReturn and ExitLoad Capped at 3%by SEBI22 September 2025safalsetu.com

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%).
ModeIncentive
Lumpsum1% of first application amount
SIP1% 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%.

Test yourself

1. SEBI has capped the maximum exit load on mutual fund schemes at what level?

The cap was reduced from 5% to 3%.

2. What is the maximum SEBI B-30 incentive per new investor?

The incentive is capped at ₹2,000 per new investor.

3. SEBI's B-30 incentives were suspended in 2023 because of which problem?

Misuse through splitting and churning led to the suspension.