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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Additional incentives to distributors for onboarding new individual investors from B-30 cities and women investors

27-Nov-2025 | HO/(83)2025-IMD-POD-1/I/152/2025

SEBI has issued a circular revising the incentive structure for mutual fund distributors to encourage onboarding of new individual investors, particularly from B-30 cities and women investors. By virtue of this circular, Under the revised framework, distributors will receive additional commission for new investors with a new PAN: 1% of the first lump sum investment or 1% of total SIP contributions in the first year, capped at Rupees 2,000, provided the investment remains for at least one year. - The commission will be paid from the 2 basis points set aside annually for investor education and inclusion, with clawback provisions. - The scheme exclusions include ETFs, Fund-of-Funds (domestic with >80% AUM in domestic funds), and schemes with durations under one year. - The circular aims to enhance financial inclusion and orderly growth of the mutual fund industry while ensuring fair and targeted incentives.

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