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  • Ask Us ‘B30 incentive will be back but in a new avatar’

    ‘B30 incentive will be back but in a new avatar’

    Ask us: SEBI will soon reintroduce the B30 incentive, which was discontinued in February 2023.
    Nishant Patnaik Jun 3, 2024

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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

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

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    6 Comments
    Anup Agarwal · 5 months ago `
    Do not agree with this differentiation just because of location. This will again promote misselling. There should be A LEVEL PLAYING FIELD accross industry. If any body has to survive in this business he or she has to come with full confidence and have patience.
    KEVAL JETHI · 5 months ago `
    We don't need B30. Now just don't tinker anything in trail for next 5 year. And fix this KYC nightmare
    Mutual Fund · 5 months ago `
    Praja is no more ,now the Raja is thinking about praja .
    Venkatraman Swaminathan · 5 months ago `
    Average sip size in B30 is Rs 2000 but in metros and other major cities is Rs 5000 to 10000. its difficult to bring new investors in B30 as Mfd needs to address lots of queries. 90% of these investors to be met in person. KYC and collecting applications tobe done physically. If B30 is not brought back again, we can hardly expect New mfds in our field
    Capitus Investments · 5 months ago `
    SEBI might introduce the new B30 concept like for every 2000 Rs SIP distributor will get a biriyani...and whenever the customer redeems within one year or get stopped they will clawback the biriyani..telling that its a luxury dish..
    Santosh Hegde · 5 months ago `
    I am from B30. Stillw e don't need B30 incentives. But fix trail for atleast 5 years intact full.
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