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A few MFDs wrote to us with this query:
We are a group of distributors working in a B30 location. It’s been over a year, we have not heard anything from SEBI or AMFI on B30 incentives. We put a lot of effort into bringing in new clients from small counters and increase the penetration of mutual funds. Request you to guide us on the way forward.
Dear MFDs,
While we have no authority to comment on such issues, the MF industry officials believe that there is no news on the reintroduction of B30 incentives.
To be sure, B30 incentive will not be introduced in the previous avatar but in the past SEBI has proposed the introduction of a new incentive structure for MFDs for bringing in new investors from B30 cities and women investors irrespective of their location based on their PAN.
In fact, a senior SEBI official told Cafemutual in November 2023 that the regulator will soon release the guidelines on B30 incentives so that AMCs can incentivize distributors for increasing the penetration of mutual funds in India.
The official acknowledged that B30 investors rely on mutual fund distributors to invest in mutual funds.
Most likely, the regulator will allow AMCs to pay a flat fee of 1% of the size of the first application amount or the amount of SIP committed subject to a maximum incentive of Rs.2000. Such a structure will be applicable for bringing in new investors from B30 cities or women investors across all locations.
According to SEBI, this one-time fee will come from the IAP corpus of 1% that stays with AMCs to create awareness among people
