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There is good news for MFDs who put untiring efforts to bring investors from B30 cities. SEBI will soon reintroduce the B30 incentives, which was discontinued in February 2023.
A senior SEBI official on the side-lines of a recently held event in Mumbai told Cafemutual 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.
Earlier in May, SEBI 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.
According to the proposals, AMCs should 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 irrespective of their location. However, both cannot be applicable simultaneously, said SEBI.
Further, this additional incentive structure is subject to claw back if such an investor redeems money within a year’s time. This onetime fee will come from IAP corpus of 1% that stays with AMCs to create awareness among people.
Another proposal was allowing AMCs to consider paying a higher percentage of commission for inflows from B30 cities compared to commission for inflows from T30 cities.
