The Securities and Exchange Board of India (SEBI) has pushed back the start date for a new incentive scheme for mutual fund distributors. Originally set to begin on February 1, 2026, the revised timeline now moves the implementation to March 1, 2026. SEBI made this decision following industry feedback citing challenges in establishing the necessary systems for a smooth rollout.
The incentive program aims to attract new investors from smaller cities and increase female participation in mutual funds. SEBI’s goal is to enhance financial inclusion and deepen mutual fund penetration across the country. Under the updated framework, distributors will receive an extra commission of 1% on the initial lump-sum investment or first-year SIP amount, capped at Rs 2,000, provided the investor stays invested for at least a year.
SEBI clarified that this additional commission, funded from the existing 2 basis points allocated by asset management companies for investor education, will be separate from the current trail commissions. However, SEBI emphasized that dual incentives will not be permitted for the same female investor from B-30 cities.
