The Securities and Exchange Board of India (SEBI) on November 27, 2025, issued the notification regarding the Additional incentives to distributors for onboarding new individual investors from B-30 cities and women investors
The following has been stated namely: -
• Regulation 52(6A)(b) of the SEBI (Mutual Funds) Regulations, 1996 that provides incentives for mobilizing investments from B-30 cities had been deleted due to misuse concerns.
• A revised model under Regulation 52(4A) now incentivizes distributors to expand outreach and promote awareness among new investors has been issued.
• Eligible New Investors (PAN-based): -
• Additional commission applies for:
o New individual investors (new PAN) from B-30 cities
o New women investors (new PAN) from both Top-30 and B-30 cities
• Distributors earn 1% of the first application amount, capped at ₹2,000, provided the investment stays for at least one year.
• For SIPs, distributors receive 1% of the total first-year investment, capped at ₹2,000.
• The additional commission will be paid from the 2 basis points AMCs must allocate annually for investor education, awareness, and financial inclusion, with clawback provisions.
• This incentive is over and above the standard trail commission already payable from the scheme.
• Distributors cannot claim both B-30 and women-investor incentives for the same investor/investment, only one benefit is allowed.
• The mandatory additional commission does not apply to:
o ETFs
o Domestic FoFs with >80% AUM in domestic funds
o Short-duration schemes (<1 year): Overnight, Liquid, Ultra Short Duration, Low Duration Funds
AMFI will issue implementation standards within 30 days, changes won’t be treated as Fundamental Attribute Changes, and the new framework is effective from February 01, 2026.
[Notification No. HO/(83)-2025-IMD-POD-1/I/52/2025]
