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SEBI Pushes Back Mutual Fund Distributor Incentive Rollout to March 1, 2026

The regulator granted more time after the industry cited the need for new compliance systems to implement the targeted commission plan.

Overview

  • The scheme targets new individual investors from B-30 cities and new women investors from any city, defined at the industry level by a new PAN.
  • AMCs will pay 1% of a new investor’s first lump-sum or first-year SIP, capped at Rs 2,000, payable only if the investment is held for at least one year.
  • The extra payout is funded from the 2 basis points already set aside for investor education and is over and above existing trail commissions.
  • SEBI barred dual claims for the same woman investor from a B-30 city and excluded ETFs, certain fund-of-funds, and overnight, liquid, ultra-short and low-duration schemes.
  • The postponement follows feedback on operational challenges, giving AMCs and distributors time to build PAN, city and gender verification and retention tracking.