SEBI's new incentive scheme for mutual fund distributors starts today
SEBI is rolling out a fresh incentive scheme for mutual fund distributors, now set to start March 1, 2026.
The big idea? Distributors get extra commission for bringing in first-time investors from smaller (B-30) cities and women from anywhere in India—if they're totally new to the market (verified by a fresh PAN).
The launch was pushed back by a month to give everyone time to adjust.
How the commission works
Distributors can earn a 1% commission on the first investment or first-year SIP, capped at ₹2,000 per investor who sticks around for at least a year.
This bonus comes from existing AMC education funds and can only be claimed once per person—no double-dipping allowed.
What funds are excluded?
Some funds are left out: ETFs, Fund of Funds (domestic) with more than 80% of Assets Under Management (AUM) invested in domestic funds, and super-short-term schemes don't qualify.
SEBI says this is about growing genuine participation in mutual funds where it matters most—smaller towns and among women—while keeping things fair and avoiding past issues like churning.
Why this matters for the future of investing in India
This move is part of SEBI's bigger plan to make investing more inclusive across India.
If you're curious about how finance is opening up—or if you want to know what changes are coming if you're thinking of investing—it's worth keeping an eye on this shift.