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MFDs will soon hear something from SEBI related to B30 incentives.
Manoj Kumar, Executive Director, SEBI said that the market regulator is contemplating to introduce new structure to incentivize distributors for bringing in new investors from B30 cities and women clients across all locations.
He was speaking on the sidelines of the conference of Association of Portfolio Managers in India (APMI).
Kumar said that while in the past the market regulator asked fund houses to prepare a fool proof mechanism to check misuse of B30 incentive structure, they did not come back to SEBI. Hence, the market regulator is developing something, which will ensure that there is no-misuse of such an incentive by market participants and improve the penetration of mutual funds in India, he said.
In the past, the regulator proposed allowing 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 would 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.
