Archive · 28 Nov 2025
SEBI Introduces New Incentives for Mutual Funds
SEBI has introduced a new incentive model to encourage mutual fund distributors to bring in more women investors and investors from smaller cities.
Starting from February 2026, distributors will earn a small commission for each new investor they bring in, as long as the investor stays invested for at least a year.
This commission will come from a special fund set aside for investor education.
The goal is to make mutual funds more popular among women and people in smaller cities.
SEBI has also set rules to prevent misuse of this incentive program.
SEBI introduced a new incentive framework to boost mutual fund penetration among women and investors from B-30 cities.
Distributors will earn 1% of the first lump-sum investment or first-year SIP amount, capped at ₹2,000, if held for at least a year.
The commission will be funded from the 0.02% corpus earmarked for investor education and inclusion.
Incentives are not applicable to ETFs, certain Fund of Funds, and short-duration schemes.
AMFI will issue implementation guidelines within 30 days, and changes in scheme documents will not require investor consent.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Introduced a new incentive framework for mutual fund distributors
- When
- Effective from February 1, 2026
- Where
- India
- Why
- To deepen mutual fund penetration among untapped investor segments, particularly women and individuals from beyond the top 30 cities (B-30)
- Effective Date
- February 1, 2026
- Incentive Categories
- New individual investors from B-30 cities and new women investors
- Commission Rate
- 1% of the first lump-sum investment or first-year SIP amount, capped at ₹2,000
- Minimum Holding Period
- 1 year
- Funding Source
- 0.02% corpus earmarked for investor education and inclusion
- Excluded Products
- ETFs, domestic Fund of Funds with over 80% exposure to Indian funds, and short-duration schemes
- Implementation Guidelines
- To be issued by AMFI within 30 days
Sources
Can Sebi's accredited investor push deliver a boom?
Sebi cancels registration of 68 investment advisers in major compliance sweep
SEBI sets norms for B30 incentives
SEBI unveils new incentive model to boost mutual fund penetration among women and B 30 investors
SEBI Announces New Mutual Fund Distributor Incentives for B-30 Cities and Women Investors Effective February 2026
Sebi introduces additional incentives for mutual fund distributors to boost participation
